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    CHANGE
about


        A Guide to findinG your Cloud Power
                 A Conversation about Change
                 Every business has unique and dynamic needs. I am sure yours is no different. Being constantly connected yet maintaining security,
                 increasing productivity and agility, reducing capital expenses – the demands from IT are changing. Now, it’s not just about doing the
                 same things in a new way but about a new way of doing new things.
                 A recent Gartner poll found that by 2012, 80% of Fortune 1000 enterprises will be using some form of cloud or off-premises computing
                 services, and 20% of businesses will own no IT assets. We believe that the answer is in the cloud; and it’s going to change the way you do
                 business.
                 Consider how fast we have shifted online as users – to store data, connect with friends and using apps on our
   we believe    personal mobile devices. Your workplace undoubtedly stands to gain by integrating with this ‘consumerisation’.

      that the   With the most comprehensive IT solutions of the cloud on earth, we now bring you the power to take control of this
                 change - develop and host applications with infinite scalability (Windows Azure), stay secure with your private cloud
  answer is in   (Windows Server Hyper-V), enable productivity and real-time collaboration (Office 365) and get better customer

    the cloud;   connection (Microsoft Dynamics CRM Online). With investments worth US $2.3 billion in cloud infrastructure, over
                 30,000 dedicated engineers and more than 9000 Microsoft Partners, the Microsoft cloud is Enterprise-ready.
and it’s going   I invite you to explore more of the cloud to experience the benefits of the change that the cloud brings - being
to change the    ready for anything, but paying only for actual results; being able to scale as high or low as you want; save energy,
                 space and yet be omnipresent.
  way you do     As a technologist, our cloud opens up a world of choices for you. With solution-specific benefits, a whitepaper on the ‘Economics of the
     business.   Cloud’ and business impact studies of organisations that have moved to the Cloud, this handbook will help you start a conversation of
                 change within your organisation.


                 This is an exciting journey for any business interested in being what’s next.
                 we call it cloud power, and it’s yours for the taking.



                 Warm Regards,
                 Sanket Akerkar,
                 Managing Director,
                 Microsoft India
                 www.cloudpower.in
                                                                                                                                                                      contents
Your Guide to
NavigatiNg the Cloud
THE CLOUD POWER PACK                                                                   1 - 13   RESOURCES                                                                                  14 - 61
Explore the areas in which IT can change your business for the better                           Explore and share the power of cloud in business with whitepapers and real-life case studies


SCALE Applications to near infinity                                                    2        The ECONOMICS of the Cloud                                                                 15 - 35
Build applications flexibly on the familiar Windows Azure platform                              Read this Microsoft Whitepaper to understand the long-term vision of the underlying
                                                                                                economics of cloud computing
CONNECT PEOPLE without making them meet                                                4
Drive productivity by communicating with Microsoft Online Services in the Cloud                 CASE STUDIES of Cloud Power @ Work                                                         36 to 61

CREATE a real-time collaboration hub                                                   6        SEAMLESS MIgRATION @                                                                       36
Enable people to work across time zones and locations with Microsoft Office 365                 30,000 employees migrate to the Cloud without interrupting business or daily operations


DRIVE greater control and IT efficiency in your Private Cloud                          8        Improved PRODUCTIvITY @                                                                    44
Transform IT services for greater business intelligence with Microsoft System Center            A simplified user experience improves collaboration and cuts IT costs by 30%
and Windows Server Hyper-V
                                                                                                EffICIENCY in the Private Cloud @                                                          49
KNOW what your customers want                                                          10       120 servers become 20 with data center budgets getting cut by 40%
Respond faster with better customer intelligence with Microsoft Dynamics CRM Online
                                                                                                IT as a SERvICE @                                                                          54
What Cloud Power holds for You                                                         12       A global company builds an online Visual Attention service application on Windows Azure
Benefit from working with Microsoft Cloud Services
the most CompreheNsive
solutioNs for the Cloud. oN earth.
the Microsoft Cloud for Businesses

        SOfTWARE as a Service        PLATfORM as a Service        iNfRASTRUCTURE as a service




the Microsoft Cloud for Consumers

                                                                               Windows Live
                                                                                          TM




                                                                          TM
                                                                               Hotmail


                                             Windows Live    TM

                                                                          Windows
                                          Messenger                       Update
      piCK Your                                                                                                    fOR IT PROfESSIONALS

      Cloud poWer                                                                                                  On-demand computing with the right
                                                                                                                   Infrastructure to actively host, scale and
                                                                                                                   manage all your services with ease and
      Here’s what the Cloud means for everyone in your organisation
                                                                                                                   speed. Plus the choice to keep high-value
      With the cloud, you can create a flexible IT ecosystem that addresses needs as they arise, backed            applications on-premises and move
      by the confidence that you always have the ability to do so. The Microsoft technologies that you             commodity workloads to the cloud.
      have already invested in is a great place to start.

SCALE Applications to near infinity | Pg 2
                                                                        CONNECT without having to meet | Pg 4      fOR DEvELOPERS
                                                                                                                   Easy scalability and reduced time to
                                                                                                                   market for developing applications on the
                                                                                                                   Windows Azure Platform. Our family of
                                                                                      CREATE a Real-time           on-demand services provides a familiar
                                                                                        collaboration hub | Pg 6   deployment experience that helps focus on
                                                                                                                   coding and reduces complexity.



                                                                                                                   fOR INfORMATION WORKERS
                                                                                                                   Productivity from any location from the PC,
                                                                                                                   phone and web with familiar Applications,
                                                                                                                   now on the cloud. Our powerful
                                                                                                                   communication and collaboration tools
                                                                                                                   provide security-enhanced connectivity
                                                                                                                   and federated access control.

                                                                TRANSFORM IT services in your Enterprise | Pg 8
    KNOW what your customers want | Pg 10
                                                                                                                                                                 1
                     sCale
                     APPliCAtionS                            easily scale your
                                                             Applications
                                                                                                                develop
                                                                                                                without boundaries
                                                                                                                Creating in the cloud

               to neAr infinity
                                                                                                                means no more worries
                                                             While running applications                         about servers, storage or
      Offer your developers a flexible and familiar          in the Cloud, you don’t have                       hardware. Your developers
             environment to easily create and host           to worry about scalability or                      can focus on the code with
    cloud-based applications with Windows Azure              performance issues. If there                       a test bed always at hand
                                                             is a sudden demand or load                         and go from a test server
                                                             expected on the servers, the                       to a production server
                                                             performance can be boosted                         almost immediately.
                                                             easily by just increasing the
                  get the poWer to                           processing capabilities.                           Cloud Power @ Work
                              Analysts' View                                                                    “By running manageCarbon
                              “Just as Windows played        Cloud Power @ Work                                 (HCL’s new carbon-data
                              a significant part in          “Windows Azure helps 3M                            management application) on
                              earlier shifts, Windows        customers take advantage of                        Windows Azure, our customers
                              Azure is poised to take an     complex algorithms that encapsulate                can be up and running in
                              important role in this new     30 years of research and get simple,               one-quarter of the time that it
                              world. If you're responsible   powerful results from their browser,               took with an on-premises model.”
                              for charting your firm's       almost instantly.”                                 RAjESH BABU SURAPARAjU,
                              path, understanding and        TERRY COLLIER, Marketing Manager, 3M               Product Manager, HCL
                              evaluating the Azure           on creating and launching a web-Based Visual       Read More>
                              environment makes              Attention service for customers on Windows Azure
                              good sense.”                   Read More>
                              David Chappell & Associates


2
                                            Avoid training costs
                                            The interoperable Azure                         A Secure
                                            platform integrates with what                   Framework
no more data                                you already have. Visual Studio                 Use the security framework
maintenance                                 developers can start building                   you are familiar with many of
With SQL Azure, you can easily              applications in no time and                     the Windows Azure services
provision and deploy multiple               also work across SOAP, REST,                    using the core .Net libraries,
databases without having to                 XML and PHP platforms from                      keeping much of the security
install, setup, parch or manage             a single location.                              and encryption details the
any software. High-availability                                                             same. A firewall mechanism
and built-in fault tolerance                Cloud Power @ Work                              enables you to allow or
makes physical administration               “The software distribution system               prevent connections from
obsolete.                                   we built with Windows Azure is 10               various sources, right down to
                                            times cheaper than our previous                 specifying IP addresses or IP
Cloud Power @ Work                          solution... Most of our developers              range.
“By using these tools to rapid              are experienced with Visual Studio
by build applications and services          tools. That was a good argument for             Cloud Power @ Work
and migrate them to the Windows             using the Windows Azure platform,               “Windows Azure gives IT
Azure platform, we will be able to          because we can use the same                     departments, incredible flexibility
help our customers quickly react            development environment.”                       and efficiency in deploying new
to market changes without major             ELMAR STOECKER, Director Portfolio              services. As a trusted third party,
capital expenditures.”                      Management, Siemens IT Solutions and Services   VeriSign adds a layer of (online)
CHANDRA SURBHAT, Global Head of Microsoft   Read More>                                      security to those environments.”            Try it Now

Business Solutions, Wipro Technologies                                                      RYAN WHITE, Product Marketing Manager
Read More>                                                                                  for SSL, VeriSign on adding VeriSign® SSL
                                                                                            Certificates on Windows Azure.
                                                                                            Read More>                                  Know More



                                                                                                                                                     3
    CoNNeCt
      PeoPle witHout
                                                     real-time meetings
                                                     without the travel
                                                     Connect with colleagues and
                                                                                                     An always-connected
                                                                                                     remote workforce
                                                                                                     Employees on the move

       MAkinG tHeM Meet
                                                     engage customers in real-time                   can easily stay in touch with
                                                     meetings, trainings or events                   presence, instant messaging
      Help information workers meet and stay         on Microsoft Live Meeting.                      (IM), and PC-to-PC audio
       updated from any location with secure         Interact by sharing applications                and video calling with Office
     online communication services for email,        or desktops and using the                       Communications Online.
           conferencing, chat and networking         multiple video and VoIP audio                   Availability can also be shown
                                                     capabilities. Whiteboard tools                  through embedded presence
                                                     and high-fidelity recording also                in Microsoft Outlook.
                 poWer up                            help keep notes.
         CoNNeCtivitY With                           Cloud Power @ Work
                                                                                                     Cloud Power @ Work
                                                                                                     “We have improved our
                       Analysts' View                “Our goal in the long term is to                organizational efficiency by
                       “Exchange Server 2010         replace many of the PBX systems.                30 percent. We have senior
                       (is) an upgrade worth         The enhanced voice capabilities                 management using Windows Mobile
                       considering. Look             simplify everything, cost less, and             devices who needs messages ‘on
                       for improvements in           give people more functionality. I               the go’, mobile users who need to
                       three areas: back-end         don’t see a downside.”                          access email from any connectivity
                       improvements largely          jOHN TSCHANNEN, Director of IT and User         framework and sales personnel who
                       connected to storage;         Services, Energizer, on deploy the voice over   work from cyber cafes and access
                       benefits to information       IP (VoIP) capabilities of Microsoft Office      email using Outlook Web Access.”
                       workers; and built-in basic   Communications Online                           MANI MULKI, Vice President-IT,
                       archiving capabilities.”      Read More>                                      Godrej Industries Limited
                       Forrester Research, Inc.                                                      Read More>
                        Read More>
4
increased email
reliability and security                                                                       familiar tools that
Moving to the cloud helps your                                                                 can be used by all
IT team provide multiple filters                                                               Mobile access to Exchange
and virus-scanning engines                                                                     Online is available from all
using Microsoft Forefront Online                      Seamless online                          email-ready phones, spanning
Protection to protect from                            migration                                Windows Phone, the iPhone,
spam, viruses and phishing                            With Exchange Online, users              Android, Palm, Nokia, and
scams. A central administration                       can acess their familiar Outlook         Blackberry devices. Choose
console helps manage                                  account online without needing           between on-premises and
subscriptions, provision users,                       a VPN connection. You can                online mailboxes depending
reset passwords, and configure                        migrate all mailbox content              on what users want.
services from any location with                       including e-mail, calendar
Internet access                                       items, contacts, and tasks.              Cloud Power @ Work
                                                                                               ”I’ve been able to provide equal or
Cloud Power @ Work                                    Cloud Power @ Work                       better email service at a much lower
”In moving from Exchange Server                       ”In a five-month timeframe, we           cost, which is a big win for Godiva.
2007 to Exchange Server 2010, the big                 migrated roughly 30,000 people to a      We’re looking at a $250,000 annual
driver will be the changes to service                 hosted solution, without impacting       savings from eliminating Notes.”
availability…. We can design a system                 their business or interrupting their     STEvE WHITELAM, Director of Information
that will have a much higher level of                 day-to-day operations.”                  Technology, Global Shared Services, Godiva
uptime.”                                              ESAT SEzER, CIO, Coca Cola Enterprises   Chocolatier on productivity gains from moving to
STEvEN PRESLEY, IT Engineer - Staff, Qualcomm on      Read More>                               Microsoft Online Services                          Know More

cutting email recovery time from 10 minutes to less                                            Read More>
than 30 seconds
Read More>



                                                                                                                                                      5
            Create
              A reAl-tiMe
                                                       Connecting
                                                       across
                                                       devices and versions
                                                                                                             Making the most of
                                                                                                             new opportunities
                                                                                                             Ensure reliability and

      CollABorAtion HuB
                                                       Make it easy to access, edit                          connectivity for all users - from
                                                       and share Office documents,                           colleagues located around
              Connect your information workers         presentations and spreadsheets                        the world, to temporary
    across time zones and geographies to share         from the PC, phone or browser                         employees to people from
     information and work together in real time        using Microsoft Office 365.                           a new acquisition. With
                                                       Users can collaborate across                          no server purchases or
                                                       different platforms (PC or                            deployments on SharePoint
                                                       Mac), different Microsoft Office                      Online, empower a small
                    poWer up                           versions and even without                             satellite office, interim staff,
             CollaboratioN bY                          have Microsoft Office on their
                                                       computers (from any web
                                                                                                             or a newly acquired business
                                                                                                             to work better together right
                                                       browser).                                             from the start.
                         Analysts' View
                         “Cloud-based email and        Cloud Power @ Work                                    Cloud Power @ Work
                         collaboration services will   ”Infosys is going to use Office Web                   “Departments are getting
                         see 10% penetration of        Apps extensively, and we expect it to                 information out to stores faster,
                         the enterprise email and      drastically reduce the time it takes to               because SharePoint Online is so easy
                         messaging market by           complete RFPs and budgets.”                           to use. We are excited to start using
                         2012 and will near 65%        vIvEK BHARATHAN, Lead Technology Specialist,          workflows to automate common
                         penetration by 2020.”         Infosys, on overcoming document version               processes such as onboarding new
                         Gartner                       compatibility across 100,000 Microsoft Office users   employees.”
                         Read More>                    Read More>                                            RHONDA COBB, Information Technology
                                                                                                             Manager, REEDS Jewelers
                                                                                                             Read More>
6
                                                  enabling knowledge
                                                  sharing quickly                                 Sharing data
                                                  A unified enterprise content                    reliably without
                                                  management system can help                      infrastructure costs
                                                  employees easily share best                     All documents and files saved
                                                  practices and expertise with                    online are hosted on Microsoft
work with                                         blogs, wikis, search, surveys                   servers maintained by our
what you know                                     and RSS feeds. Users can also                   own trained experts. Patches           Know More

The familiar interface of Microsoft               easily create and maintain                      and security updates are
Outlook and Office applications                   collaborative workspaces                        supplied in real time, ensuring
is now extended online with                       using meeting and team site                     that users always work on
Office 365 for Enterprises.                       templates.                                      the latest, most up-to-date
Meaning no learning curve plus                                                                    versions of applications.
now online productivity features                  Cloud Power @ Work
for your employees.                               “Together with Microsoft, we hit the            Cloud Power @ Work
                                                  overall goal in 142 days and helped             “Moving to Online Services
Cloud Power @ Work                                Aviva achieve the deployment in                 will enable us to reduce our IT
“The speech-to-text features will be              around one half of the cost of the              operational costs by roughly 30%
great for our 20,000 or so mobile                 original budget”                                of what we’re currently spending.
device users because they will be able            TOBY REDSHAW, CIO, Aviva, on creating 1         The ability to introduce a variable
to access their voice-mail messages               intranet in 12 languages for 60,000 employees   cost subscription model for these
even if they can’t call into the system.”         Read More>                                      collaborative technologies allows us
DEAN SEPSTRUP, Product Manager for Exchange,                                                      to more rapidly scale or divest our
Boeing on the Voice-Mail Preview that’s helping                                                   investment as necessary.”
drive employee productivity                                                                       ALASTAIR ROBERTSON,
Read More>                                                                                        VP, Information Workplace
                                                                                                  Read More>


                                                                                                                                                     7
    traNsform                                                                                             end-to-end
                                                                                                          Management
                it SerViCeS                                  Efficiency through
                                                                                                    Rs.   Control
                                                                                                          Automation and migrating
        in your enterPriSe                                   automation                                   online doesn’t mean loss
                         Drive efficiency through            Build a flexible and efficient               of control. In fact, you can
                                                             private cloud infrastructure                 now manage your entire
    greater flexibility and control of IT services           using Windows Server 2008 R2                 IT infrastructure spanning
                       in your own private cloud             Hyper-V and System Center.                   physical on-premises and
                                                             By automating data resources                 virtual cloud environments
                                                             management and following                     from a single screen.
                                                             a self-service model, you can
           poWer up busiNess                                 save on operational costs in                 Cloud Power @ Work
                agilitY With                                 physical administration and
                                                             troubleshooting.
                                                                                                          “We chose Windows Server 2008
                                                                                                          R2 Hyper-V because we have
                        Analysts' View                                                                    standardized our IT setup on
                        “For most organisations,             Cloud Power @ Work                           Microsoft technologies. Moving to
                        virtualisation will provide the       ”We have trimmed our physical               a new platform would have meant
                        foundation and the stepping-         server holdings from 120 to merely           lack of predictability and increased
                        stone for the evolution to private   20 servers. The expenses on server           costs”
                        cloud computing… Security must       boxes have dropped drastically by 40         SHYAM CHANDRAMANI, Unit Manager -
                        become adaptive to support           percent of our data center budget.”          Global Server Team, Mphasis Limited
                        a model where workloads are          SANDEEP gANDHI, Sr. Manager, Data Center     Read More>

                        decoupled from physical hardware     Operations, KPIT Cummins
                        and dynamically allocated to a       Read More>
                        fabric of computing resources.”
                        Thomas Bittman, Gartner analyst
                        Read More>
8
                                                    faster
                                                    time to market
                                                    With its flexibile setup, private
                                                    cloud technology
                                                    accelerates development                           Maximise your it
freedom to focus                                    times for custom applications                     investments
on business                                         and lets IT respond quickly to                    Leverage your existing                         Try it Now

Simplifying IT management and                       changing business needs. The                      assets and skill sets - across
the assurance of security means                     private cloud can integrate                       identity (Active Directory),
more time for you to focus on                       with existing toolsets and                        management (System Center)
developing solutions that would                     provide symmetry with your                        and developer technologies                     Know More

have not been possible before.                      on-premises or cloud                              (.Net, SQL Server and
                                                    database.                                         Visual Studio) - to work on
Cloud Power @ Work                                                                                    private and public cloud
“Microsoft has invested billions of                 Cloud Power @ Work                                environments.
dollars in cloud technologies, which                “You simply plug in and use the
gives us peace of mind... confidence                relevant resources... The ability to              Cloud Power @ Work
at the Associated Press that our data               receive these resources as a service              “With Windows Azure, we didn’t
is secure, even though it is                        made it possible for us to                        have to make changes to the
off-premises.”                                      considerably speed up the process                 architecture of our solution to get it
PRAMOD ANCHUPARAYIL, Software Architect,            of reaching customers. Plus, we                   running. To start up quickly - that is
Associated Press on hosting its Breaking News API   avoided spending US $50,000 on                    really big for us.”
on Azure                                            hardware and a hosting facility.”                 RAIK DITTRICH, Innovation Manager, T-Systems
Read More>                                          NIR HAgSHURY, Chief Technical Officer, TicTacTi   Read More>
                                                    Read More>




                                                                                                                                                       9
     know wHAt your                                ensuring rapid


Customers
                                                   user adoption
                                                   Inflexible software and a poor              Closing
                                                   user experience often hamper                deals faster
       wAnt                                        usage of CRM applications.
                                                   Microsoft Dynamics CRM
                                                                                               Give sales professionals
                   Strengthen customer             Online provides an entire suite
                                                                                               instant fast access to
        interactions, improve marketing            of marketing, sales and service
                                                                                               customer data and history
              and boost sales with easy                                                        when connected to the In-
            online access to information           solutions within the familiar               ternet and even when offline.
                                                   interface of Microsoft Office               Sales prospects and
                                                   Outlook on the PC or when                   customers can be informed
                                                   accessed online, ensuring rapid             of new product and service
     poWer up Customer                             user adoption and fast results.             offerings with wizard-based
           relatioNs bY                            Cloud Power @ Work
                                                                                               communication tools.

                  Analysts' View                   “We know that salespeople find the          Cloud Power @ Work
                  “Microsoft Dynamics CRM          new system much easier to use. The          “It would have taken 70 hours a
                  shines by offering flexibility   rate of responses in our new system         month to get the pre-opportunity
                  for large and midsized           has increased by 30 to 45 percent           data that now is just there in the
                  organizations… Offering          over what it was in Salesforce.com.”        system. Our efficiency has soared
                  buyers the ‘Power of Choice’     AISHA THOMAS, Marketing IT Manager, Unico   by well over 100 percent with
                  so that companies may            Read More>                                  Microsoft Dynamics CRM Online.”
                                                                                               jEff KIELY,
                  choose how to deploy, how
                                                                                               Vice President of Sales and Marketing, Trion
                  to pay, and how to use the
                                                                                               Read More>
                  application.”
                  The Forrester Wave




10
Generating                                             Better information
great demand                                           sharing
Understand your customers                              Ensure customer loyalty with
better and target your resources                       consistent, efficient service                  Growing with your
to the areas of highest return                         by empowering customer                         business needs
with a comprehensive set of                            service personnel with the right               Easy-to-use wizards and
marketing capabilities. Marketing                      information. Customer data                     point-and-click customization
professionals can increase                             can be made available as and                   tools help you customise and           Try it Now

marketing effectiveness and                            when needed - through the                      connect your CRM data with
track key performance with                             user interface, online or as an                existing business system data
intuitive data segmentation tools,                     exported web file. The intuitive               in real-time. The pay-per-user
campaign management features                           configuration capabilities can                 model delivered online, makes          Know More

and marketing analytics, all                           be tailored to fit your business               setting up quick to scale as
available online.                                      needs by quickly adding or                     required without any server
                                                       modifying fields, forms, workflow              setup or expensive hardware
Cloud Power @ Work                                     and reports.                                   upgrades.
“Using Marketing Automation in
Microsoft Dynamics CRM, we now                         Cloud Power @ Work                             Cloud Power @ Work
deliver over 5,000 birthday emails a                   “Microsoft Dynamics CRM has been               “By switching to Microsoft Dynamics
day to participants, reminding them                    essential to helping us improve                CRM Online from Salesforce.com,
to celebrate their birthdays with us.”                 our customer satisfaction levels               we’re saving nearly $13,000 each
HEATHER DORR, Senior Manager of Marketing              and implement an effective sales               month with 160 users.”
Information Systems, Cold Stone Creamery which         management process. It provides a              jOEL fRIEDMAN, CIO, Century Payments
has enrolled over 15 lakh Birthday Club participants   single version of our customer data            Read More>
with thousands of new members joining everyday         to all our sales staff.”
Read More>                                             UMAIR CHAUDHARY, COO, Barclays Bank LP, UAE
                                                       and Gulf on increasing customer satisfaction
                                                       by 15 percent
                                                       Read More>

                                                                                                                                                 11
     What Cloud poWer
     holds for You
     Benefit from working with Microsoft Cloud Services -
     the most comprehensive set of solutions for the cloud   doN’t throW
                                                             aNYthiNg aWaY
                                                             Move only what you want
                                                             to the cloud with a hybrid
                                                             model of on-premises and
                                                             off-premises resources.
                                 paY for What                Build on your existing IT
                                 happeNs                     assets and connect them to
                                 IT costs are now            online services.
                                 flexible – just pay per
                                 user per month on any
                                 application as a service.
                                 Different usage models
                                 also help you accurately
                                 predict costs.




12
                                15 Years of
                                experieNCe                     develop faster
                                When you work in the           Build applications faster than
No more                         Microsoft Cloud, you           ever with a million-strong
maiNteNaNCe                     leverage the knowledge         developer base writing to
Always use the latest           and expertise of 15 years,     Microsoft platforms and           alWaYs available
software without worrying       ranging from applications      more coming through our           All the resources needed for
about upgrades and              (Hotmail) to search (Bing)     interoperability support of       a robust cloud computing
patches. The cloud              and platforms (Xbox Live)      third-party solutions.            infrastructure - a global
automatically updates to                                                                         reach, a commitment to
the latest versions.                                                                             security, 99.9 percent uptime
                                                                                                 SLA with 24/7 service and
                                                                                                 support.
                                help at haNd                   staY seCure
                                Our ecosystem of 9,000         Your data is stored on a
No traiNiNg                     partners - spanning ISVs,      global network of 200+
required                        value-added resellers and      enterprise-class data centers
All your users can easily       systems integrators - choose   with SAS 70 and ISO 27001         loWer Costs
move to and from the            from our ecosystem to help     security certifications audited   No more paying for
cloud, using their skill sets   you in migration, hosting      by an independent third           hardware and facility
and familiarity with the        services and creating          party.                            expenses. Cut down on
products they currently use.    customised applications.                                         maintenance and operational
Get a consistent experience                                                                      overheads by paying for
across all devices.                                                                              service.


                                                                                                                                 13
                                              why the Cloud makes Business Sense

     resourCes                                Thousands of companies are discovering why making their IT an enterprise-
                                              ready service makes business sense. Explore more with our whitepaper and see
                                              how global companies are seeing business benefits in the Microsoft Cloud.


         The Economics of the Cloud | Pg 15                              Seamless migration at Coca Cola Enterprises | Pg 36




                                                                                     Improved Productivity at GlaxoSmithKline | Pg 44




                                                                 Efficiency in the Private Cloud at KPIT Cummins | Pg 49
     IT as a Service at 3M | Pg 54
14
               Computing is undergoing a seismic shift from
               client/server to the cloud, a shift similar in importance and

         the   impact to the transition from mainframe to client/server.
               Speculation abounds on how this new era will evolve in

eCoNomiCs of   the coming years, and IT leaders have a critical need for a
               clear vision of where the industry is heading. We believe

   the Cloud   the best way to form this vision is to understand the
               underlying economics driving the long-term trend. In this
               paper, we will assess the economics of the cloud by using
               in-depth modeling. We then use this framework to better
               understand the long-term IT landscape.


               For comments or questions regarding the content of this paper,
               please contact Rolf Harms (rolfh@microsoft.com) or
               Michael Yamartino (michael.yamartino@microsoft.com)




                                                                                15
     Introduction
                                                                                           By the 1920s the number of cars had already reached 8 million, and today there
                                                                                           are over 600 million cars – proving Daimler wrong hundreds of times over.


     W
               hen cars emerged in                                                         What the early pioneers failed to realize was that profound reductions in both
               the early 20th century,                                                     cost and complexity of operating cars and a dramatic increase in its importance
               they were initially called                                                  in daily life would overwhelm prior constraints and bring cars to the masses.
     “horseless carriages”. Understandably,
     people were skeptical at first, and                                                   Today, IT is going through a similar change: the shift from client/server to
     they viewed the invention through                                                     the cloud. Cloud promises not just cheaper IT, but also faster, easier, more
     the lens of the paradigm that had                                                     flexible, and more effective IT. Just as in the early days of the car industry, it‘s
     been dominant for centuries: the                                                      currently difficult to see where this new paradigm will take us. The goal of
     horse and carriage. The first cars                                                    this whitepaper is to help build a framework that allows IT leaders to plan
     also looked very similar to the                                                       for the cloud transition2. We take a long-term view in our analysis, as this is
     horse and carriage (just without the                                                  a prerequisite when evaluating decisions and investments that could last for
     horse), as engineers initially failed to                Horseless Carriage Syndrome   decades. As a result, we focus on the economics of cloud rather than on specific
     understand the new possibilities of the new paradigm, such as building for            technologies or other driving factors like organizational change, as economics
     higher speeds, or greater safety. Incredibly, engineers kept designing the            often provide a clearer understanding of transformations of this nature.
     whip holder into the early models before realizing that it wasn‘t
     necessary anymore.                                                                    In Section 2, we outline the underlying economics of cloud, focusing on what
                                                                                           makes it truly different from client/server. In Section 3, we will assess the
     Initially there was a broad failure to fully comprehend the new paradigm.             implications of these economics for the future of IT. We will discuss the positive
     Banks claimed that, The horse is here to stay but the automobile is only              impact cloud will have but will also discuss the obstacles that still exist today.
     a novelty, a fad”. Even the early pioneers of the car didn‘t fully grasp the          Finally, in Section 4 we will discuss what‘s important to consider as IT leaders
     potential impact their work could have on the world. When Daimler, arguably           embark on the journey to the cloud.
     the inventor of the automobile, attempted to estimate the long-term auto
     market opportunity, he concluded there could never be more than 1 million             Source: Horseless Carriage Thinking, William Horton Consulting
                                                                                           1

     cars, because of their high cost and the shortage of capable chauffeurs1.             Cloud in this context refers to cloud computing architecture, encompassing both public and private clouds.
                                                                                           2




16
                                                                                                    Fig. 2: Cloud Opportunity



eCoNomiCs
of the Cloud
Economics are a powerful force in shaping industry transformations. Today‘s
discussions on the cloud focus a great deal on technical complexities and
adoption hurdles. While we acknowledge that such concerns exist and are
                                                                                                                                                                         Source: Microsoft
important, historically, underlying economics have a much stronger impact
on the direction and speed of disruptions, as technological challenges are                          fig. 3: Beginning the Transition to Client Server Technology
resolved or overcome through the rapid innovation we‘ve grown accustomed
to (Fig. 2). During the mainframe era, client/server was initially viewed as a toy
technology, not viable as a mainframe replacement. Yet, over time the
client/server technology found its way into the enterprise (Fig. 3). Similarly,
when virtualization technology was first proposed, application compatibility
concerns and potential vendor lock-in were cited as barriers to adoption.                                                                                          Source: “How convention
                                                                                                                                                                   shapes our market”
Yet underlying economics of 20 to 30 percent savings3 compelled CIOs to                                                                                            longitudinal survey,
overcome these concerns, and adoption quickly accelerated.                                                                                                         Shana Greenstein, 1997.


The emergence of cloud services is again fundamentally shifting the economics                         Cloud also allows core IT infrastructure to be brought into large data centers
of IT. Cloud technology standardizes and pools IT resources and automates                             that take advantage of significant economies of scale in three areas:
many of the maintenance tasks done manually today. Cloud architectures                                  •	Supply-side savings. Large-scale data centers (DCs) lower costs per server.
facilitate elastic consumption, self-service, and pay-as-you-go pricing.                                •	Demand-side aggregation. Aggregating demand for computing smooths
The massive aggregate scale of these mega DCs will bring considerable and                                 overall variability, allowing server utilization rates to increase.
                                                                                                        •	Multi-tenancy efficiency. When changing to a multitenant application
3
    Source: Dataquest Insight: Many Midsize Businesses Looking Toward 100% Server Virtualization.         model, increasing the number of tenants (i.e., customers or users) lowers
    Gartner, May 8, 2009                                                                                  the application management and server cost per tenant.

                                                                                                                                                                                             17
                                                                                                               Fig. 4: ECONOMIES OF SCALE (ILLUSTRATIVE)



 2.1 Supply-Side Economies of Scale
 Cloud computing combines the best economic properties of mainframe and
 client/server computing. The mainframe era was characterized by significant
 economies of scale due to high up-front costs of mainframes and the need to
 hire sophisticated personnel to manage the systems. As required computing                                                                                                Source: Microsoft
 power – measured in MIPS (million instructions per second) – increased, cost
 declined rapidly at first (Fig. 4), but only large central IT organizations had       The economies of scale emanate from the following areas:
 the resources and the aggregate demand to justify the investment. Due to              Cost of power: Electricity cost is rapidly rising to become the largest element of
 the high cost, resource utilization was prioritized over end-user agility. Users‘     total cost of ownership (TCO),5 currently representing 15%-20%. Power Usage
 requests were put in a queue and processed only when needed resources were            Effectiveness (PUE)6 tends to be significantly lower in large facilities than in
 available. With the advent of minicomputers and later client/server technology,       smaller ones. While the operators of small data centers must pay the prevailing
 the minimum unit of purchase was greatly reduced, and the resources became            local rate for electricity, large providers can pay less than one-fourth of the
 easier to operate and maintain. This modularization significantly lowered the         national average rate by locating its data centers in locations with inexpensive
 entry barriers to providing IT services, radically improving end-user agility.        electricity supply and through bulk purchase agreements7. In addition, research
 However, there was a significant utilization tradeoff was, resulting in the current   has shown that operators of multiple data centers are able to take advantage
 state of affairs: datacenters sprawling with servers purchased for whatever           of geographical variability in electricity rates, which can further reduce
 needed existed at the time, but running at just 5%-10% utilization4.                  energy cost.
                                                                                       4
                                                                                         Source: The Economics of Virtualization: Moving Toward an Application-Based Cost Model, IDC,
 Cloud computing is not a return to the mainframe era as is sometimes                    November 2009.
                                                                                       5
                                                                                         Not including app labor. Studies suggest that for low-efficiency datacenters, three-year spending on
 suggested, but in fact offers users economies of scale and efficiency that              power and cooling,including infrastructure, already outstrips three-year server hardware spending.
 exceed those of a mainframe, coupled with modularity and agility beyond what          6
                                                                                         Power Utilization Effectiveness equals total power delivered into a datacenter divided by critical power
                                                                                         – the power needed to actually run the servers. Thus, it measures the efficiency of the datacenter in
 client/server technology offered, thus eliminating the tradeoff.                         turning electricity into computation.The best theoretical value is 1.0, with higher numbers being
                                                                                          worse.
                                                                                       7
                                                                                         Source: U.S. Energy Information Administration (July 2010) and Microsoft. While the average U.S.
                                                                                         commercial ratesome locations offer power for is 10.15 cents per kilowatt hour, as little as 2.2 cents per
                                                                                         kilowatt hour

18
Infrastructure labor costs: While cloud computing significantly lowers labor
costs at any scale by automating many repetitive management tasks, larger
facilities are able to lower them further than smaller ones. While a single
system administrator can service approximately 140 servers in a traditional
enterprise,8 in a cloud data center the same administrator can service                                                                                                         Fig. 5:
thousands of servers. This allows IT employees to focus on higher value-add                                                                                                    RECENT LARGE
activities like building new capabilities and working through the long queue of                                                                                                DATA-CENTER
                                                                                                                                                                               PROJECTS
user requests every IT department contends with.
                                                                                                                                                                                 Source: Press Releses

Security and reliability: While often cited as a potential hurdle to public cloud   ongoing R&D to bear on running them more efficiently, and make them more
adoption, increased need for security and reliability leads to economies of scale   efficient for their customers. Providers of large-scale DCs, for which running them
due to the largely fixed level of investment required to achieve operational        is a primary business goal, are likely to benefit more from this than smaller DCs
security and reliability. Large commercial cloud providers are often better able    which are run inside enterprises.
to bring deep expertise to bear on this problem than a typical corporate IT
department, thus actually making cloud systems more secure and reliable.
                                                                                    2.2 Demand-Side Economies of Scale
Buying power: Operators of large data centers can get discounts on                  The overall cost of IT is determined not just by the cost of capacity, but also by the
hardware purchases of up to 30 percent over smaller buyers. This is                 degree to which the capacity is efficiently utilized. We need to assess the impact
enabled by standardizing on a limited number of hardware and software               that demand aggregation will have on costs of actually utilized resources (CPU,
architectures. Recall that for the majority of the mainframe era, more than 10      network, and storage)9. In the non-virtualized data center, each application/work-
different architectures coexisted. Even client/server included nearly a dozen       load typically runs on its own physical server10. This means the number of servers
UNIX variants and the Windows Server OS, and x86 and a handful of RISC              scales linearly with the number of server workloads. In this model, utilization of
architectures. Large-scale buying power was difficult in this heterogeneous         8
                                                                                     Source: James Hamilton, Microsoft Research, 2006.
                                                                                    9
                                                                                     In this paper, we talk generally about resource utilization. We acknowledge there are important differences
environment. With cloud, infrastructure homogeneity enables scale economies.          among resources.For example, because storage has fewer usage spikes compared with CPU and I/O resources,
Going forward, there will likely be many additional economies of scale that we        the impact of some of what we discuss here will affect storage to a smaller degree.
                                                                                    10
                                                                                       Multiple applications can run on a single server, of course, but this is not common practice. It is
cannot yet foresee. The industry is at the early stages of building data centers       very challenging to move a running application from one server to another without also moving
at a scale we‘ve never seen before (Fig. 5).                                           the operating system, so running multiple applications on one operating system instance can create
                                                                                       bottlenecks that are difficult to remedy while maintaining service, thereby limitingagility.
                                                                                       Virtualization allows the application plus operating system to be moved at will.
                                                                                                                                                                                                   19
 servers has traditionally been extremely low, around 5 to 10 percent11.                 To meet service level agreements, capacity buffers have to be built in to
 Virtualization enables multiple applications to run on a single physical server         account for a certain probability that many people will undertake particular
 within their optimized operating system instance, so the primary benefit of             tasks at the same time. If servers are pooled, this variability can be reduced.
 virtualization is that fewer servers are needed to carry the same number of
 workloads. But how will this affect economies of scale? If all workloads had            2. Time-of-day patterns: There are daily recurring cycles in people‘s behavior:
 constant utilization, this would entail a simple unit compression without               consumer services tend to peak in the evening, while workplace services tend
 impacting economies of scale. In reality, however, workloads are highly variable        to peak during the workday. Capacity has to be built to account for these daily
 over time, often demanding large amounts of resources one minute and                    peaks but will go unused during other parts of the day causing low utilization.
 virtually none the next. This opens up opportunities for utilization improvement        This variability can be countered by running the same workload for multiple
 via demand-side aggregation and diversification.                                        time zones on the same servers (Fig. 7) or by running workloads with
                                                                                         complementary time-of-day patterns (for example, consumer services and
 We analyzed the different sources of utilization variability and then looked at the     enterprise services) on the same servers.
 ability of the cloud to diversify it away and thus reduce costs.
                                                                                         Fig. 7: TIME-OF-DAY PATTERNS FOR SEARCH
 We distinguish five sources of variability and assess how they might be reduced:
 1. Randomness: End-user access patterns contain a certain degree of
 randomness. For example, people check their email at different times (Fig.6).
     Fig. 6: RANDOM VARIABILITY (EXCHANGE SERVER)




                                                                                                                                                          Source: Bing Search volume over 24-hour period
                                                                                         11
                                                                                              Source: The Economics of Virtualization: Moving Toward an Application-Based Cost Model, IDC,
                                                                     Source: Microsoft        November 2009.


20
                                                                                      Fig. 9: MULTIRESOURCE VARIABILITY (ILLUSTRATIVE)
3. Industry-specific variability: Some variability is driven by industry
dynamics. Retail firms see a spike during the holiday shopping season while
U.S. tax firms will see a peak before April 15 (Fig. 8).
Fig. 8: INDUSTRY-SPECIFIC VARIABILITY




                                                                                                                                                      Source: Microsoft
                                                                                      While it‘s possible to adjust capacity by buying servers optimized for CPU or
                                                                                      storage, this addresses the issue only to a limited degree because it will
                                                                                      reduce flexibility and may not be economic from a capacity perspective. This
                                                                                      variability will lead to resources going unutilized unless workload diversification
                                                                                      is employed by running workloads with complementary resource profiles.
                                                            Source: Alexa Internet

                                                                                      5. Uncertain growth patterns: The difficulty of predicting future need for
There are multiple kinds of industry variability - some recurring and predictable     computing resources and the long leadtime for bringing capacity online is
(such as the tax season or the Olympic Games), and others unpredictable (such         another source of low utilization (Fig. 10).
as major news stories). The common result is that capacity has to be built for
                                                                                      Fig. 10: DIVERSIFYING RANDOM VARIABILITY
the expected peak (plus a margin of error). Most of this capacity will sit idle the
rest of the time. Strong diversification benefits exist for industry variability.

4. Multi-resource variability: Compute, storage, and input/output (I/O)
resources are generally bought in bundles: a server contains a certain amount
of computing power (CPU), storage, and I/O (e.g., networking or disk access).
Some workloads like search use a lot of CPU but relatively little storage or I/O,
while other workloads like email tend to use a lot of storage but little
CPU (Fig. 9).                                                                                                                                         Source: Microsoft


                                                                                                                                                                            21
     For startups, this is sometimes referred to as the TechCrunch effect. Enterprises     large, multi-geography organizations, the majority of employees and users
     and small businesses all need to secure approval for IT investments well in           will live in similar time zones, bringing their daily cycles close to synchrony.
     advance of actually knowing their demand for infrastructure. Even large private       Also, most organizations do not tend to have workload patterns that offset one
     companies face this challenge, with firms planning their purchases six to             another: for example, the email, network and transaction processing activity
     twelve months in advance (Fig. 10). By diversifying among workloads across            that takes place during business hours is not replaced by an equally active
     multiple customers, cloud providers can reduce this variability, as higher-           stream of work in the middle of the night. Pooling organizations and workloads
     than-anticipated demand for some workloads is canceled out by lower-than-             of different types allows these peaks and troughs to be offset.
     anticipated demand for others.

     A key economic advantage of the cloud is its ability to address variability in
     resource utilization brought on by these factors. By pooling resources, variability
                                                                                                                                                                       Fig.11:
     is diversified away, evening out utilization patterns. The larger the pool of
                                                                                                                                                                       DIVERSIFYING
     resources, the smoother the aggregate demand profile, the higher the overall
                                                                                                                                                                       RANDOM
     utilization rate, and the cheaper and more efficiently the IT organization can
                                                                                                                                                                       VARIABILITY
     meet its end-user demands.

     We modeled the theoretical impact of random variability of demand on server
     utilization rates as we increase the number of servers12. Fig. 11 indicates that a                                                                                Source: Microsoft

     theoretical pool of 1,000 servers could be run at approximately 90% utilization       Industry variability results in highly correlated peaks and troughs throughout
     without violating its SLA. This only holds true in the hypothetical situation         each firm (that is, most of the systems in a retail firm will be at peak capacity
     where random variability is the only source of variability and workloads can          around the holiday season (e.g., web servers, transaction processing, payment
     be migrated between physical servers instantly without interruption. Note that        processing, databases)13. Fig. 12 shows industry variability for a number of
     higher levels of uptime (as defined in a service level agreement or SLA) become       different industries, with peaks ranging from 1.5x to 10x average usage.
     much easier to deliver as scale increases.                                            12
                                                                                              To calculate economies of scale arising from diversifying random variability, we created a Monte
                                                                                              Carlo model to simulatedata centers of various sizes serving many random workloads. For each
                                                                                               simulated DC, workloads (which are made to resemble hypothetical web usage patterns) wer
     Clouds will be able to reduce time-of-day variability to the extent that they             successively added until the expected availability of server resources dropped below agiven uptime of
     are diversified amongst geographies and workload types. Within an average                 99.9 percent or 99.99 percent. The maximum number of workloads determines the maximum
                                                                                               utilization rate at which the DC‘s servers can operate without compromising performance.
     organization, peak IT usage can be twice as high as the daily average. Even in        13
                                                                                              Ideally, we would use the server utilization history of a large number of customers to gain more
                                                                                              insight into such patterns. However, this data is difficult to get and often of poor quality. We therefore
                                                                                              used web traffic as a proxy for the industry variability.
22
Microsoft services such as Windows Live Hotmail and Bing take advantage of                  Windows Azure because every frame of their movies takes eight hours to
multi-resource diversification by layering different subservices to optimize                render today on a single processor, meaning it would take 272 years to
workloads with different resource profiles (such as CPU bound or storage                    render an entire movie. As they said, We are not that patient. With Azure,
bound). It is difficult to quantify these benefits, so we have not included multi-          they can get the job done as fast as they need. The result is huge spikes
resource diversification in our model.                                                      in Pixar‘s usage of Azure as they render on-demand.

Some uncertain growth pattern variability can be reduced by hardware
standardization and just-in-time procurement, although likely not completely.
Based on our modeling, the impact of growth uncertainty for enterprises with
up to 1,000 servers is 30 to 40 percent overprovisioning of servers relative to
a public cloud service. For smaller companies (for example, Internet startups),                                                     Fig 12:
the impact is far greater.                                                                                                          INDUSTRY VARIABILITY
                                                                                                                                    Source: Microsoft
So far we have made the implicit assumption that the degree of variability will
stay the same as we move to the cloud. In reality, it is likely that the variability   •	   Batch processes will become real time: Many processes — for example,
will significantly increase, which will further increase economies of scale. There          accurate stock availability for online retailers — that were previously
are two reasons why this may happen:                                                        batch driven, will move to real-time. Thus, multi-stage processes that
•	 Higher expectation of performance: Today, users have become                              were once sequential will now occur simultaneously, such as a manufac-
       accustomed to resource constraints and have learned to live with them.               turing firm that can tally its inventory, check its order backlog, and order
       For example, users will schedule complex calculations to run overnight,              new supplies at once. This will amplify utilization variability.
       avoid multiple model iterations, or decide to forgo time-consuming and
       costly supply chain optimizations. The business model of cloud allows           We note that even the largest public clouds will not be able to diversify away all
       a user to pay the same for 1 machine running for 1,000 hours as he              variability; market level variability will likely remain. To further smooth demand,
       would for 1,000 machines running for 1 hour. Today, the user would likely       sophisticated pricing can be employed. For example, similar to the electricity
       wait 1,000 hours or abandon the project. In the cloud, there is virtually       market (Fig. 13), customers can be incented to shift their demand from high
       no additional cost to choosing 1,000 machines and accelerating such             utilization periods to low utilization periods. In addition, a lower price spurs
       processes. This will have a dramatic impact on variability. Pixar Animation     additional usage from customers due to price elasticity of demand. Demand
       Studios, for example runs its computer-animation rendering process on           management will further increase the economic benefits of cloud.

                                                                                                                                                                             23
                                                                                            365-S to assess the impact. In dedicated instances, the same activities, such
     Fig. 13: VARIABLE PRICING IN ELECTRICITY
                                                                                            as applying software patches, are performed multiple times – once for each
                                                                                            instance. In a multi-tenant instance such as Office 365-S, that cost is shared
                                                                                            across a large set of customers, driving application labor costs per customer
                                                                                            towards zero. This can result in a meaningful reduction in overall cost,
                                                                                            especially for complex applications.




                                                                                                                                                Fig.14:
                                                        Source: Ameren Illinois Utilities                                                       UTILIZATION
                                                                                                                                                OVERHEAD
     2.3 Multi-tenancy Economies of Scale
                                                                                                                                                 Source: Microsoft
     The previously described supply-side and demand-side economies of scale
     can be achieved independent of the application architecture, whether it                •	   fixed component of server utilization amortized over large number
     be traditional scale-up or scale-out, single tenant or multitenant. There is                of customers: For each application instance, there is a certain amount
     another important source of economies of scale that can be harnessed only                   of server overhead. Fig. 14 shows an example from Microsoft‘s IT
     if the application is written as a multitenant application. That is, rather than            department in which intraday variability appears muted (only a 16
     running an application instance for each customer – as is done for on-premises              percent increase between peak and trough) compared to actual variability
     application and most hosted applications such as dedicated instances of                     in user access. This is caused by application and runtime overhead, which
     Microsoft Office 365 – in a multitenant application, multiple customers use a               is constant throughout the day. By moving to a multitenant model with
     single instance of the application simultaneously, as in the case of shared                 a single instance, this resource overhead can be amortized across all
     Office 365. This has two important economic benefits:                                       customers. We have examined Office 365-D, Office 365-S, and Microsoft
     •	 fixed application labor amortized over a large number of customers:                      Live@edu data to estimate this overhead, but so far it has proven
            In a single-tenant instance, each customer has to pay for its own                    technically challenging to isolate this effect from other variability in the
            application management (that is, the labor associated with update and                data (for example, user counts and server utilization) and architectural
            upgrade management and incident resolution).                                         differences in the applications. Therefore, we currently assume no benefit
     We‘ve examined data from customers, as well as Office 365-D and Office                      from this effect in our model.

24
Applications can be entirely multitenant by being completely written to take        This raises the question: what impact will the Cloud Economics we described
advantage of these benefits, or can achieve partial multi-tenancy by leveraging     have on the IT budget? From customer data, we know the approximate
shared services provided by the cloud platform. The greater the use of such         breakdown between the infrastructure costs, costs of supporting and
shared services, the greater the application will benefit from these multi-         maintaining existing applications, and new application development costs (Fig.
tenancy economies of scale.                                                         16). Cloud impacts all three of these areas. The supply-side and demand-side
                                                                                    savings impact mostly the infrastructure portion, which comprises over half of
2.4 Overall Impact                                                                  spending. Existing app maintenance costs include update and patching labor,
The combination of supply-side economies of scale in server capacity                end-user support, and license fees paid to vendors. They account for roughly a
(amortizing costs across more servers), demand-side aggregation of workloads        third of spending and are addressed by the multi-tenancy efficiency factor.
(reducing variability), and the multi-tenant application model (amortizing costs    Fig 16: IT SPENDING BREAKDOWN
across multiple customers) leads to powerful economies of scale. To estimate
the magnitude, we built a cost scaling model which estimates the long term
behavior of costs.

Fig. 15 shows the output for a workload that utilizes 10 percent of a traditional
server. The model indicates that a 100,000-server datacenter has an 80% lower
total cost of ownership (TCO) compared to a 1,000-server datacenter.
                                                                                                                                                        Source: Microsoft

                                                                                    New application development accounts for just over a tenth of spending14, even
                                                                                    though it is seen as the way for IT to innovate. Therefore IT leaders generally
                                                      Fig 15: ECONOMIES OF
                                                                                    want to increase spending here. The economic benefits of cloud computing
                                                      SCALE IN THE CLOUD            described here will enable this by freeing up room in the budget to do so. We
                                                                                    will touch more on this aspect in the next paragraph as well as in Section 3.
                                                                                    14
                                                                                         New application development costs include only the cost of designing and writing the application and
                                                                                         excluding the cost of hosting .them on new infrastructure. Adding these costs results in the 80% / 20%
                                                                                         split seen elsewher
                                                         Source: Microsoft


                                                                                                                                                                                                  25
                                                                                          a bit of a horseless carriage in that the underlying platform and tools were
     2.5 Harnessing Cloud Economics                                                       not designed specifically for the cloud. The full advantage of cloud computing
     Capturing the benefits described above is not a straightforward task with today‘s    can only be properly unlocked through a significant investment in intelligent
     technology. Just as engineers had to fundamentally rethink design in the early       resource management. The resource manager must understand both the status
     days of the car, so too will developers have to rethink design of applications.      of the resources (networking, storage, and compute) as well as the activity of the
     Multi-tenancy and demand-side aggregation is often difficult for developers          applications being run. Therefore, when writing new apps, Platform as a Service,
     or even sophisticated IT departments to implement on their own. If not done          most effectively captures the economic benefits. PaaS offers shared services,
     correctly, it could end up either significantly raising the costs of developing      advanced management, and automation features that allow developers to focus
     applications (thus at least partially nullifying the increased budget room for new   directly on application logic rather than on engineering their application to scale.
     app development); or capturing only a small subset of the savings previously
     described. The best approach in harnessing the cloud economics is different for
     packaged apps vs. new/custom apps.

     Packaged applications: While virtualizing packaged applications and moving
     them to cloud virtual machines (e.g., virtualized Exchange) can generate some                                                                         Fig.17 CAPTURING
     savings, this solution is far from ideal and fails to capture the full benefits                                                                       CLOUD BENEFITS
     outlined in this Section. The cause is twofold. First, applications designed to
                                                                                                                                                              Source: Microsoft
     be run on a single server will not easily scale up and down without significant
     additional programming to add load-balancing, automatic failover, redundancy,        To illustrate the impact, a startup named Animoto used Infrastructure-as-a-
     and active resource management. This limits the extent to which they are able to     Service (IaaS) to enable scaling - adding over 3,500 servers to their capacity in
     aggregate demand and increase server utilization. Second, traditional packaged       just 3 days as they served over three-quarters of a million new users. Examining
     applications are not written for multi-tenancy, and simply hosting them in           their application later, however, the Animoto team discovered that a large
     the cloud does not change this. For packaged apps, the best way to harness           percentage of the resources they were paying for were often sitting
     the benefits of cloud is to use SaaS offerings like Office365, which have been       idle - often over 50%, even in a supposedly elastic cloud. They re-architected
     architected for scale-out and multi-tenancy to capture the full benefits.            their application and eventually lowered operating costs by 20%. While Animoto
                                                                                          is a cloud success story, it was only after an investment in intelligent resource
     New/custom applications: Infrastructure-as-a-Service (IaaS) can help capture         management that they were able to harness the full benefits of cloud. PaaS
     some of the economic benefits for existing applications. Doing so is, however,       would have delivered many of these benefits out-of-the-box without any
                                                                                          additional tweaking required.
26
impliCatioNs
In this section, we will discuss the implications of the previously described
                                                                                    1. Elasticity is a game-changer because, as described before, renting 1
                                                                                    machine for 1,000 hours will be nearly equivalent to renting 1,000 machines for
                                                                                    1 hour in the cloud. This will enable users and agencies to rapidly accomplish
economics of cloud. We will discuss the ability of private clouds to address        complex tasks that were previously prohibited by cost or time constraints.
some of the barriers to cloud adoption and assess the cost gap between              Being able to both scale up and scale down resource intensity nearly instantly
public and private clouds.                                                          enables a new class of experimentation and entrepreneurship.
                                                                                    2. Elimination of capital expenditure will significantly lower the risk premium
3.1 Possibilities & Obstacles                                                       of projects, allowing for more experimentation. This both lowers the costs of
The economics we described in section 2 will have a profound impact on IT.          starting an operation and lowers the cost of failure or exit – if an application no
Many IT leaders today are faced with the problem that 80% of the budget is          longer needs certain resources, they can be decommissioned with no further
spent on keeping the lights on, maintaining existing services and infrastructure.   expense or write-off.
This leaves few resources available for innovation or addressing the never-         3. Self-service Provisioning servers through a simple web portal rather than
ending queue of new business and user requests. Cloud computing will free up        through a complex IT procurement and approval chain can lower friction in
significant resources that can be redirected to innovation. Demand for general      the consumption model, enabling rapid provisioning and integration of new
purpose technologies like IT has historically proven to be very price elastic       services. Such a system also allows projects to be completed in less time with
(Fig. 18). Thus, many IT projects that previously were cost prohibitive will now    less risk and lower administrative overhead than previously.
become viable thanks to cloud economics. However, lower TCO is only one of          4. Reduction of complexity. Complexity has been a long standing inhibitor of
the key drivers that will lead to a renewed level of innovation within IT:          IT innovation. From an end-user perspective SaaS is setting a new bar for user
                                                                                    friendly software. From a developer perspective Platform as a Service (PaaS)
                                                                                    greatly simplifies the process of writing new applications, in the same way as
                                                                                    cars greatly reduced the complexity of transportation.
                                                                                    These factors will significantly increase the value add delivered by IT. Elasticity
                                                                                    enables applications like yield management, complex event processing,
                                                  Fig 18:
                                                                                    logistics optimization, and Monte Carlo simulation, as these workloads exhibit
                                                  PRICE ELASTICITY
                                                                                    nearly infinite demand for IT resources. The result will be massively improved
                                                  OF STORAGE
                                                                                    experience, including scenarios like real-time business intelligence analytics
                                                    Source: Coughlin Associates     and HPC for the masses.

                                                                                                                                                                          27
     However, many surveys show that significant concerns currently exist around          •	   Compliance and Data Sovereignty – Enterprises are subject to audits and
     cloud computing. As Figure 19 shows, security, privacy, maturity, and compliance          oversight, both internal and external (e.g. IRS, SEC). Companies in many
     are the top concerns. Many CIOs also worry about legacy compatibility: it is often        countries have data sovereignty requirements that severely restrict where
     not straightforward to move existing applications to the cloud.                           they can host data services. CIOs ask: which clouds can comply with these
                                                                                               systems and what needs to be done to make them compliant?
     Fig 19: PUBLIC CLOUD CONCERNS                                                        While many of these concerns can be addressed by cloud today, concerns
                                                                                          remain and are prompting IT leaders to explore private clouds as a way of
                                                                                          achieving the benefits of cloud while solving these problems. Next, we will
                                                                                          explore this in more detail and also assess the potential tradeoffs.

                                                                                          3.3 Private Clouds
                                                                                          Microsoft distinguishes between public and private clouds based on whether
                                                                                          the IT resources are shared between many distinct organizations (public cloud)
                                                                                          or dedicated to a single organization (private cloud). This taxonomy is illus-
                                                             Source: Gartner CIO survey
                                                                                          trated in Fig. 20. Compared to traditional virtualized datacenters, both private
                                                                                          and public clouds benefit from automated management (to save on repetitive
                                                                                          labor) and homogenous hardware (for lower cost and increased flexibility). Due
                                                                                          to the broadly-shared nature of public clouds, a key difference between private
     •	   Security and Privacy CIOs must be able to report to their CEO and other         and public clouds is the scale and scope at which they can pool demand.
          executives how the company‘s data is being kept private and secure.
          Financially and strategically important data and processes often are pro-
          tected by complex security requirements. Legacy systems have typically                                                                    Fig 20:
          been highly customized to achieve these goals, and moving to a cloud                                                                      COMPARING
          architecture can be challenging. Furthermore, experience with the built-                                                                  VIRTUALIZATION,
          in, standardized security capabilities of cloud is still limited and many                                                                 PRIVATE CLOUD, AND
          CIOs still feel more confident with legacy systems in this regard.                                                                        PUBLIC CLOUD
     •	   Maturity and Performance Cloud requires CIOs to trust others to provide                                                                   Source: Microsoft. Shaded
          reliable and highly available services. Unlike on-premises outages, cloud                                                                 checks indicate an
                                                                                                                                                    optional characteristic
          outages are often highly visible and may increase concerns
28
•	        Private clouds move beyond virtualization. Resources are now pooled                            A variety of performance levels will be available in both public and private form,
          across the company rather than by organizational unit,15 and workloads                         so there is little reason to expect that one will have an advantage over another.16
          are moved seamlessly between physical servers to ensure optimal                                While private clouds can alleviate some of the concerns, in the next paragraph
          efficiency and availability. This further reduces the impact of random,                        we will discuss whether they will offer the same kind of savings described
          time-of-day, and workload variability. In addition, new, cloud-optimized                       earlier.
          application models (Platform as a Service such as Azure) enable more
          efficient app development and lower ongoing operations costs.                                  3.4 Cost Trade-Off
•	        Public clouds have all the same architectural elements as private clouds,                      While it should be clear from the prior discussion that conceptually the public
          but bring massively higher scale to bear on all sources of variability.                        cloud has the greatest ability to capture diversification benefits, we need to
          Public clouds are also the only way to diversify away industry-specific                        get a better sense of the magnitude. Fig. 21 shows that while the public cloud
          variability, the full geographic element of time-of-day variability, and                       addresses all sources of variability the private cloud can address only a subset.
          bring multi-tenancy benefits into effect.                                                      For example, industry variability cannot be addressed by a private cloud, while
                                                                                                         growth variability can be addressed only to a limited degree if an organization
Private clouds can address some of the previously mentioned adoption concerns.                           pools all its internal resources in a private cloud. We modeled all of these
By having dedicated hardware, they are easier to bring within the corporate                              factors, and the output is shown in Fig. 22.
firewall, which may ease concerns around security and privacy. Bringing a private
                                                                                                         Fig 21: DIVERSIFICATION BENEFITS
cloud on-premise can make it easier to address some of the regulatory, compliance
and sovereignty concerns that can arise with services that cross jurisdictional
boundaries. In cases where these concerns weigh heavily in an IT leader‘s decision,
an investment in a private cloud may be the best option.

Private clouds do not really differ from public cloud regarding other concerns,
such as maturity and performance. Public and private cloud technologies are                               Source: Microsoft.
developing in tandem and will mature together.

15
     Aggregation across organizational units is enabled by two key technologies: live migration, which
                                                                                                         16
                                                                                                              Private clouds do allow for a greater degree of customization than public clouds, which could
     moves virtual machineswhile remaining operational, thereby enabling more dynamic optimization;           enhance performance for a certain computational task. Customization requires R&D effort and
     and self-service provisioning and billing.                                                               expense, however, so it is difficult to make a direct price/performance comparison .


                                                                                                                                                                                                              29
     .
     Fig 22: COST BENEFIT OF PUBLIC CLOUD
                                                                                         In addition to the increase in TCO, private clouds also require upfront
                                                                                         investment to deploy - an investment that must accommodate peak demand
                                                                                         requirements. This involves separate budgeting and commitment, increasing
                                                                                         risk. Public clouds, on the other hand, can generally be provisioned entirely on
                                                                                         a pay-as-you-go basis.

                                                            Source: Gartner CIO survey
                                                                                         3.5 Finding Balance Today: Weighing the Benefits of Private
                                                                                         Cloud against the Costs
                                                                                         We‘ve mapped a view of how public and private clouds measure up in
                                                                                         Figure 23. The vertical axis measures the public cloud cost advantage. From
                                                                                         the prior analysis we know public cloud has inherent economic advantages
     The lower curve shows the cost for a public cloud (same as the curve shown          that will partially depend on customer size, so the bubbles‘ vertical position is
     in Fig. 15). The upper curve shows how the cost of a private cloud. The public      dependent on the size of the server installed base. The horizontal axis
     cloud curve is lower at every scale due to the greater impact of demand             represents the organization‘s preference for private cloud. The size of the
     aggregation and the multi-tenancy effect. Global scale public clouds are likely     circles reflects the total server installed base of companies of each type. The
     to become extremely large, at least 100,000 servers in size, or possibly much       bottom-right quadrant thus represents the most attractive areas for private
     larger, whereas the size of an organization‘s private cloud will depend on its      clouds (relatively low cost premium, high preference).
     demand and budget for IT.

     Fig. 22 also shows that for organizations with a very small installed base of
     servers (<100), private clouds are prohibitively expensive compared to public
     cloud. The only way for these small organizations or departments to share
     in the benefits of at scale cloud computing is by moving to a public cloud.
     For large agencies with an installed base of approximately 1,000 servers,
     private clouds are feasible but come with a significant cost premium of                                                                      Fig 23: COST AND BENEFITS
     about 10 times the cost of a public cloud for the same unit of service, due                                                                  OF PRIVATE CLOUDS
     to the combined effect of scale, demand diversification and multi-tenancy.                                                                   Source: Micrisoft


30
We acknowledge that Figure 23 provides a simplified view. IT for is not                      3.6 The Long View: Cloud Transition Over Time
monolithic within any of these industry segments. Each organization‘s IT opera-              As we pointed out in the introduction of this paper, it is dangerous to make
tion is segmented into workload types, such as email or ERP. Each of these has               decisions during the early stages of a disruption without a clear vision of the
a different level of sensitivity and scale, and CIO surveys reveal that preference           end state. IT leaders need to design their architecture with a long term vision in
for public cloud solutions currently varies greatly across workloads (Figure 24).            mind. We therefore need to consider how the long term forces will impact the
                                                                                             position of the bubbles on Fig. 23.

                                                                                             We expect two important shifts to take place. First, the economic benefit of
                                                                                             public cloud will grow over time. As more and more work is done on public
                                                                                             clouds, the economies of scale we described in Section 2 will kick in, and the cost
                                                                                             premium on private clouds will increase over time. Customers will increasingly
                                                                                             be able to tap into the supply-side, demand-side and multi-tenancy savings as
                                                                                             discussed previously. As shown in Fig. 27 this leads to an upward shift along the
                                                                       Fig 24: CLOUD READY   vertical axis.
                                                                       WORKLOADS (2010)
                                                                                             Fig 27: EXPECTED PREFERENCE SHIFT FOR PUBLIC AND PRIVATE CLOUD
 Source: Microsoft Survey Question 'In the next 12-24 months, please indicate if a cloud
 offering would augment on-prmise offering or completely replace it

An additional factor is that many app portfolios have been developed over the
past 15-30 years and are tightly woven together. This particularly holds true for
ERP and related custom applications at larger companies who have more sizable
application portfolios. Apps that are more isolated‘ such as CRM, collaboration,
or new custom apps may be more easily deployed in the cloud. Some of those
apps may need to be integrated back to current on-premises apps.
Before we draw final conclusions, we need to make sure we avoid the horseless
carriage syndrome and consider the likely shift along the two axes (economics
and private preference).
                                                                                                                                                         Source: Microsoft.


                                                                                                                                                                                  31
     At the same time, some of the barriers to cloud adoption will begin to fall.                 e-signatures became more acceptable. Today, most contracts (including those for
     Many technology case studies show that, over time, concerns over issues like                 opening bank accounts and taking out loans) can be signed with an e-signature.
     compatibility, security, reliability, and privacy will be addressed. This will likely also   The large group of customers who are rapidly increasing reliance on public
     happen for the cloud, which would represent a shift to the left on Fig. 27. Below            clouds—small and medium businesses (SMBs) and consumers of Software as a
     we will explore some of the factors that cause this latter shift.                            Service (SaaS)—will be a formidable force of change in this area. This growing
                                                                                                  constituency will continue to ask governments to accommodate the shift to cloud
     Cloud security will evolve                                                                   by modernizing legislation. This regulatory evolution will make public cloud a
     Public clouds are in a relatively early stage of development, so naturally critical ar-      more viable alternative for large enterprises and thus move segments along the
     eas like reliability and security will continue to improve. Data already suggests that       horizontal axis toward public cloud preference.
     public cloud email is more reliable than most on-premises implementations. In
     PaaS, the automatic patching and updating of cloud systems greatly improves the              Decentralized IT (also known as ‘rogue IT’) will continue to lead
     security of all data and applications, as the majority of exploited vulnerabilities take     the charge
     advantage of systems that are out-of-date. Many security experts argue there are             Many prior technology transitions were led not by CIOs but by departments, busi-
     no fundamental reasons why public clouds would be less secure; in fact, they are             ness decision makers, developers, and end users – often in spite of the objections
     likely to become more secure than on premises due to the intense scrutiny provid-            of CIOs. For example, both PCs and servers were initially adopted by end users
     ers must place on security and the deep level of expertise they are developing.              and departments before they were officially embraced by corporate IT policies.
                                                                                                  More recently, we saw this with the adoption of mobile phones, where consumer
     Clouds will become more compliant                                                            adoption is driving IT to support these devices. We‘re seeing a similar pattern in
     Compliance requirements can come from within an organizational, industry, or                 the cloud: developers and departments have started using cloud services, often
     government (e.g., European Data Protection Directive) and may currently be                   without the knowledge of the IT group (hence the name rogue clouds). Many
     challenging to achieve with cloud withouta robust development platform designed              business users will not wait for their IT group to provide them with a private cloud;
     for enterprise needs. As cloud technologies improve, and as compliance require-              for these users, productivity and convenience often trump policy.
     ments adapt to accommodate cloud architectures, cloud will continue to become                It is not just impatience that drives rogue clouds; ever-increasing budgetary
     more compliant, and therefore feasible for more organizations and workloads.                 constraints can lead users and even departments to adopt cheaper public cloud
     This was the case, for example, with, e-signatures, which were not accepted for              solutions that would not be affordable from traditional channels. For example,
     many contracts and documents in the early days of the Internet. As authentication            when Derek Gottfrid wanted to process all 4TB of the New York Times archives
     and encryption technology improved and as compliance requirements changed,                   and host them online, he went to the cloud without the knowledge of the Times‘

32
                                                                                         Fig 28: INCREASING ADOPTION OF SOFTWARE AS A SERVICE (SAAS)
IT department17. Similarly, the unprecedented pricing transparency that the public
cloud offers, will put further pressure from the CEO and CFO on CIOs to move to
the public cloud.

CIOs should acknowledge that these behaviors are commonplace early in a
disruption and either rapidly develop and implement a private cloud with the
same capabilities or adopt policies which incorporate some of this behavior, where
appropriate, in IT standards.

                                                                                                                                    Source: Gartner.
Perceptions are rapidly changing
Strength in SaaS adoption in large enterprises serves as proof of changing               Revisiting our horseless carriage analogy, we see that cars became a huge
perceptions (Fig. 28) and indicates that even large, demanding enterprises are           success not simply because they were faster and better (and eventually more
moving to the left on the horizontal axis (i.e., reduced private preference). Just a     affordable) than horse-drawn carriages. The entire transportation ecosystem
few years ago, very few large companies were willing to shift their email, with all      had to change. Highway systems, driver training programs, accurate maps and
the confidential data that it contains, to a cloud model. Yet this is exactly what is    signage, targeted safety regulation, and a worldwide network of fueling infra-
happening today.                                                                         structure all had to be developed to enable this transition. Each successive de-
                                                                                         velopment improved the value proposition of the car. In the end, even people‘s
As positive use cases continue to spur more interest in cloud technology, this virtu-    living habits changed around the automobile, resulting in the explosion of the
ous cycle will accelerate, driving greater interest in and acceptance of cloud.          suburbs in the middle part of the 20th century. This created net new demand
                                                                                         for cars by giving rise to the commuting professional class. This behavioral
In summary, while there are real hurdles to cloud adoption today, these will likely      change represented a massive positive feedback loop that inexorably made the
diminish over time. While new, unforeseen hurdles to public cloud adoption may           automobile an essential, irreplaceable component of modern life.
appear, the public cloud economic advantage will grow stronger with time as
cloud providers unlock the benefits of economics we discussed in Section 2. While        Similarly, we believe cloud will be enabled and driven not just by economics
the desire for a private cloud is mostly driven by security and compliance concerns      and qualitative developments in technology and perception, but by a series of
around existing workloads, the cost effectiveness and agility of the public cloud will   shifts from IT professionals, regulators, telecom operators, ISVs, systems inte-
enable new workloads.                                                                    grators, and cloud platform providers. As cloud is embraced more thoroughly,
 http://open.blogs.nytimes.com/2007/11/01/self-service-prorated-super-computing-fun/
17
                                                                                         its value will increase.
                                                                                                                                                                            33
                                                                                          This future won‘t materialize overnight. IT leaders need to develop a new 5- to

     the JourNeY                                                                          10-year vision of the future, recognizing that they and their organizations will
                                                                                          play a fundamentally new role in their company. They need to plot a path that

     to the Cloud                                                                         connects where they are today to that future. An important first step in this is
                                                                                          to segment their portfolio of existing applications (Fig. 29). For some apps the
                                                                                          economic and agility benefits may be very strong so they should be migrated
     Because we are in the early days of the cloud paradigm shift, there is much          quickly. However, barriers do exist today, and while we outlined in section 3
     confusion about the direction of this ongoing transformation. In this paper,         that many of them will be overcome over time, cloud may not be ready for
     we looked beyond the current technology and focused on the underlying                some apps today. For tightly integrated apps with fairly stable usage patterns, it
     economics of cloud to define the destination - where all of this disruption and      may not make senseto move them at all, similar to how some mainframe apps
     innovation is leading our industry. Based on our analysis, we see a long-term        were never migrated to client/server. While new custom apps don‘t have the
     shift to the cloud driven by three important economies of scale: (1) Larger          legacy problem, designing them in a scalable, robust fashion is not always an
     datacenters can deploy computational resources at significantly lower cost than      easy task. Cloud optimized platforms (Platform as a Service) can dramatically
     smaller ones; (2) Demand pooling improves the utilization of these resources,        simplify this task.
     especially in public clouds; and (3) Multi-tenancy lowers application main-                                                             This transition is a delicate
     tenance labor costs for large public clouds. Finally, the cloud offers unparal-                                                         balancing act. If the IT or-
                                                                                          Fig 29: SEGMENTING IT PORTFOLIO
     leled levels of elasticity and agility that will enable exciting new solutions and                                                      ganization moves too quickly
     applications.                                                                                                                           in areas where the cloud is
     For businesses of all sizes, the cloud represents tremendous opportunity. It                                                            not ready, it can compromise
     represents an opportunity to break out of the longstanding tradition of IT                                                              business continuity, security,
     professionals spending 80 percent of their time and budget keeping the lights                                                           and compliance. If it moves
     on, with few resources left to focus on innovation. Cloud services will enable                                                          too slowly, it can put the
     IT groups to focus more on innovation while leaving non-differentiating                                                                 company at a significant
     activities to reliable and cost-effective providers. Cloud services will enable                                                         competitive disadvantage
     IT leaders to offer new solutions that were previously seen as either cost pro-                                                         versus competitors who do
     hibitive or too difficult to implement. This is especially true of cloud platforms                                                      take full advantage of cloud
     (Platform as a Service), which significantly reduce the time and complexity of                                                          capabilities, giving up a cost,
     building new apps that take advantage of all the benefits of the cloud.               Source: Microsoft                                 agility, or value advantage.

34
Moving too slowly also increases the risk that different groups or individuals        customer by ignoring the complexities of this transformation.
within the company will each adopt their own cloud solution in a fragmented and
uncontrolled fashion (rogue IT), wresting control over IT from the CIO. IT leaders    At Microsoft, we are all in on the cloud. We provide both commercial SaaS (Office
who stay ahead of the cloud trend will be able to control and shape this transi-      365) and a cloud computing platform (Windows Azure Platform). Office 365
tion; those who lag behind will increasingly lose control.                            features the applications customers are familiar with like Exchange email and
                                                                                      SharePoint collaboration, delivered through Microsoft‘s cloud. Windows Azure
To lead the transition, IT leaders need to think about the long term architecture     is our cloud computing platform, which enables customers to build their own
of their IT. Some see a new role emerging, that of a Cloud Services Architect, who    applications and IT operations in a secure, scalable way in the cloud. Writing
determines which applications and services move to the cloud and exactly when         scalable and robust cloud applications is no easy feat, so we built Windows Azure
such a move takes place based on a business case and a detailed understand-           to harness Microsoft‘s expertise in building our cloud-optimized applications
ing of the cloud capabilities available. This should start by taking inventory of     like Office 365, Bing, and Windows Live Hotmail. Rather than just moving virtual
the organization‘s resources and policies. This includes an application and data      machines to the cloud, we build a Platform as a Service that reduces complexity
classification exercise to determine which policy or performance requirements         for developers and IT administrators.
(such as confidential or top secret data retention requirements) apply to which
applications and data. Based on this, IT leaders can determine what parts of their    Microsoft also brings to the cloud the richest partner community in the world. We
IT operation are suitable for public cloud and what might justify an investment       have over 600,000 partners in more than 200 countries servicing millions of busi-
in private cloud. Beginning in this manner takes advantage of the opportunity of      nesses. We are already collaborating with thousands of our partners on the cloud
cloud while striking balance between economics and security, performance,
                                                                                      transition. Together we are building the most secure, reliable, scalable, available,
and risk.
                                                                                      cloud in the world.

To accomplish this, IT leaders need a partner who is firmly committed to the          Over the last three decades, Microsoft has developed strong relationships with
long-term vision of the cloud and its opportunities, one who is not hanging on to     IT organizations, their partners, and their advisors. This offers us an unparalleled
legacy IT architectures. At the same time, this partner needs to be firmly rooted     understanding of the challenges faced by today‘s IT organizations. Microsoft is
in the realities of today‘s IT so it understands current challenges and how to        both committed to the cloud vision and has the experience to help IT leaders on
best navigate the journey to the cloud. IT leaders need a partner who is neither      the journey.
incentivized to push for change faster than is responsible nor to keep IT the same.
Customers need a partner who has done the hard work of figuring out how
best to marry legacy IT with the cloud, rather than placing that burden on the

                                                                                                                                                                             35
                                               CoCa-Cola                                                      Coca-Cola Enterprises (CCE)
                                                                                                              employs approximately 72,000

                                               eNterprises
                                               selects Microsoft SharePoint Online
                                                                                                              people in 431 facilities around
                                                                                                              the globe. Much of its workforce
                                                                                                              is mobile with 55,000 vehicles
                                               to advance productivity                                        and 2.4 million coolers, vending
                                                                                                              machines, and beverage
                                                                                                              dispensers. With increasing
     OvERvIEW                                                                                                 competition in the marketplace,
     Country or Region: Worldwide                                                                             CCE needed a more effective way
     Industry: Consumer goods Retail                                                   Microsoft gave         to collaborate with its employees,
                                                                                       us an incredible       to increase its productivity, to
     Customer Profile                          Solution                                platform that allows   enable better flow of information
     Coca-Cola Enterprises (CCE) is the        CCE implemented a Microsoft-based       us to do a number      and to create more time for
     world’s largest marketer, producer, and   hosted worldwide intranet with          of things, beyond      sales persons to engage with
     distributor of nonalcoholic beverages,    messaging and collaboration tools,      hosting our portal.    customers. Its worldwide
     which it delivers with the industry’s     which are accessible to all employees   It provides workflow   presence required employees and
     most effective marketplace execution.     from any device, enabling employees     management and         executives to spend numerous
                                               to boost productivity and time with     team collaboration     hours on the road every week,
     Business Situation                        customers.                              across geographies     travelling to internal meetings.
     CCE’s increasing competition was                                                  and time zones.        With Microsoft® Online Services
     resulting in declining revenues.          Benefits                                JoHn key,              technologies, CCE can save
     This required company executives            • Productivity andcustomer focus      Assistant Director     travel expenses through online
     to launch a new strategic                   • Companywide intranet                Communication          meeting tools and collaboration
     direction, mandating a platform to          • IT transformation                   and Collaboration      platforms that span time zones
     communicate and engage with all             • Effective remote teams              Technologies, CCE      and geographies.
     employees.                                  • Deskless worker access

36
SituAtion                        Coca-Cola Enterprises faces    CEO John Brock and CIO Esat
Coca-Cola Enterprises            strong competition from        Sezer agreed that in order to
(NYSE: “CCE”) is the world’s     other beverage companies       evolve the company culture
largest marketer, producer,      and needed a way to work       and improve customer
and distributor of Coca-         more effectively with its      relationships at CCE, the
Cola products. Coca-Cola         customers and partners. This   leadership team needed the
Enterprises’ growing             required innovation and a      ability to communicate with
product portfolio includes       new way of communicating       all CCE employees, especially
the world’s greatest brands      within the corporation. In     those managing day-to-day
and beverages which it           2008, CCE acknowledged that    operations in the field. Most
delivers with the industry’s     its current communications     of the diverse CCE personnel
most effective marketplace       platforms were no longer       work in a distributed manner.
execution. Today, it serves      enabling the innovation and    Employees in manufacturing
419 million consumers,           collaboration required to      facilities had limited access   Our CEO challenged
throughout North America,        take it to the next level to   to the corporate network.       us to find better ways
the U.S. Virgin Islands, other   compete in an increasingly     Its mobile, customer-facing     to connect all of our
Caribbean islands, Belgium,      demanding economic             employees, who are on the       employees…. SharePoint
France, Great Britain,           environment.                   front line, making sales and    Online addressed those
Luxembourg, Monaco, and                                         positioning the CCE products    challenges and helped
the Netherlands. It employs      CCE required a centralized     in store environments,          us launch from a legacy
approximately 72,000 people      platform on which to           also lacked convenient          infrastructure to a
and operates 431 facilities,     promote the company’s          access to company               solution which provided
55,000 vehicles, and 2.4         initiatives. Its messaging     content. Additionally, CCE      better business value to
million coolers, vending         was based largely around       needed to drive action and      all of our people.
machines, and beverage           e-mail, which was unable       information to all employees    keVin flowerS,
dispensers.                      to reach its largely mobile    in its business by role.        Director of Enabling
                                 workforce. Chairman and        CCE’s infrastructure did        Technologies, CCE

                                                                                                                           37
                                not allow for this, making        journey. IT considered using     Communications Online,
                                it difficult for employees to     partners to address its          and Microsoft Office Live
                                locate appropriate content        messaging needs and wanted       Meeting, CCE consolidated
                                in a timely manner. Kevin         to expand this to include        and streamlined its IT
                                Flowers, Director of Enabling     development of its corporate     partnerships and enhanced
                                Technologies, says, “John         intranet. Both solutions         its focus on providing
                                Brock, our CEO, challenged        needed to support mobile         value to the business. CCE
                                us to find better ways to         devices to reach employees in    deployed its corporate
                                connect all of our employees.     manufacturing facilities and     intranet on SharePoint Online
                                He asked us to create a           the field.                       as its primary collaboration
                                unified way to reach all of                                        platform, which included
                                the field resources for more      Solution                         content management,
     We had a massive           than 400 locations in the         With many older systems,         enterprise search, workflow,
     change agenda that         U.S. alone. SharePoint Online     CCE had several partners         line of business integration,
     we were trying to          addressed those challenges        providing dozens of              and rights management
     communicate to the         and helped us launch from         communication and                capabilities.
     organization….We had       a legacy infrastructure to        collaboration solutions.
     a lot of objectives, but   a solution which provided         CCE saw an opportunity to        In its assessment of whether
     the two primary ones       better business value to all of   optimize its infrastructure by   to upgrade its current
     were a better way to       our people.”                      broadening its relationship      platform or transform
     communicate with our                                         with Microsoft. With             the company to a hosted
     employees while at         Taking on a new project like      the implementation of            model, CCE considered
     the same time driving      building a corporate intranet     Microsoft Online Services,       options presented by several
     effectiveness and          was exciting yet daunting as      which includes Microsoft         major software and service
     efficiency.                IT resources were engaged         SharePoint® Online,              providers. CCE desired a
     lAuren SAyeSki,            on many other initiatives as      Microsoft Exchange               partnership where it could
     Communications, CCE        part of their transformation      Online, Microsoft Office         utilize its enterprise software

38
on premises with integrated       SeCurity                        CCE’s, gave us a great sense
software services in the cloud,   Initially, Tim Smith, the       of comfort that Microsoft
and turned to Microsoft to        Chief Information Security      has thought of all the right
execute upon its objectives.      Officer at CCE needed to be     things.”
Planning for the project          convinced that Microsoft
began in mid January 2008         would provide security          A fundamental shift occurred
and was completed by mid          measures that matched or        in how CCE viewed Microsoft
May. Microsoft Exchange           exceeded CCE’s stringent        services and capabilities
Online and Microsoft              requirements. Visiting the      running in Microsoft data
SharePoint Online received        Tukwila data center, Smith      centers, not as an outsourcing
“service acceptance” by July      was impressed by the            arrangement, but as a
and user migration for both       virtual and physical security   security-enhanced extension       To have one source
began in September. By            provided by Microsoft,          of CCE’s own enterprise           of the truth is very
the end of 2008, 23,000           as well as the third-party      network.                          important as teams
users had been migrated           SAS 70 audit reports that                                         start to form across the
to Exchange Online, 30,000        Microsoft uses to monitor       the right information at          globe. You want to be
users were on SharePoint          security compliance. Tim        the right time                    sure you always have
Online, and 10,000 users          Smith, CCE Chief Information    CCE decided to use Microsoft      the latest version of
had migrated from IBM             Security Officer, says, “Step   integrated communication          the document you’re
Sametime to Microsoft Office      one in getting comfortable      and collaboration tools to        working on. SharePoint
Communications Server             with giving our data to         streamline communication          Online makes that
for instant messaging. It         Microsoft was visiting one      across its entire organization.   possible.
added Microsoft Office Live       of their data centers. To       A critical component of the       JoHn key,
Meeting for Web and video         understand the physical         corporate intranet portal at      Assistant Director
conferencing in April 2008.       nature of what they’re doing    CCE was the integration of        Communications
                                  to safeguard not only their     SAP user role information         and Collaboration
                                  own information, but also       into its on-premises Active       Technologies, CCE

                                                                                                                               39
                               Directory® service and         ease and effectiveness of       of which enable seamless
                               its Microsoft SharePoint       Collaboration                   collaboration across
                               Online environment. This       Seeing the business need        geographies and time zones.
                               will allow CCE to target       and the ability to increase     John Key, Assistant Director
                               the right information to       its communication and           of Communication and
                               the right employee based       collaboration capabilities,     Collaboration Technologies,
                               on roles outlined in SAP.      CCE was able to move            says, “To have one source of
                               By integrating SAP data        very quickly to execute         the truth is very important as
                               into SharePoint sites, CCE     the migration. Lauren           teams start to form across the
                               employees can access           Sayeski, Public Affairs and     globe. You want to be sure
                               data through recognizable      Communications Manager,         you always have the latest
                               Microsoft Office programs,     says, “We had a massive         version of the document
                               giving employees the ability
                                                              change agenda that we were      you’re working on. SharePoint
                               to make information for
     There was huge                                           trying to communicate to        Online makes that possible.”
                               business operations easy
     excitement and                                           the organization. We had
                               to find, share, and update.
     energy around the         Previously, CCE did not
                                                              a lot of objectives with this   knowledge Sharing and
     CCE partnership with      have a common solution
                                                              project, but the two primary    Social networking
     Microsoft. This has       that enabled document
                                                              ones were a better way          CCE’s executive
     been one of the best      management. Documents          to communicate with our         communication prior to its
     IT partner projects CCE   that needed to be shared       employees while at the same     new corporate intranet was
     has experienced and we    with colleagues were housed    time driving effectiveness      historically top-down. With
     have the added value      in shared folders on network   and efficiency.” Content        its Microsoft SharePoint
     of a longer IT roadmap    drives, sent via e-mail, or    management features on          Online intranet solution, it
     with Microsoft....        stored in team rooms, all      SharePoint Online include       now has open dialogue with
     keVin flowerS,            of which were limited in       version management,             employees communicating
     Director of Enabling      access, version control, and   workflow management,            to leadership and with each
     Technologies, CCE         searchability.                 and rights management, all      other. Sayeski says,

40
“We focused on ways for           them with the information        that we can get it
employees to comment              they need, where and when        very quickly.”
back to the organization as       they need it most. Microsoft
well as communicate with          SharePoint Online has been       worldwide Collaboration
each other. Now we have           embraced by employees            CCE now has a robust
the ability to post comments      across the company. Within       intranet portal to support
on the intranet and create        four weeks of enabling users     worldwide collaboration and
team sites. We’re finding that    to create team sites, there      communication of corporate
employees are talking to each     were over 800 requests for       strategy. Sapient Consulting
other and using each other’s      sites focused on business        and Slalom Consulting
resources, sharing knowledge.     priorities and customer-         designed the custom intranet
We launched our first CEO         facing business teams. Tom       and collaboration solution on
blog last year and in the first   Barlow, Vice President of        top of Microsoft SharePoint
five minutes had more than        Business Transformation,         Online. Sapient created the
40 responses back. That’s just    N.A., says, “From a business     compelling visual design
the beginning; we know that       transformation perspective,      with a user-based enterprise
the intranet can be so much       we have a lot of projects        portal workflow. Slalom
more powerful as a place          underway which focus on          designed and developed
of action.”                       revenue generation and cost      custom SharePoint features
                                  savings. Through the use of      in accordance with Microsoft
BenefitS                          SharePoint Online, we’re able    development standards and
Productivity and                  to educate our team so that      best practices, as well as
Customer focus                    they can find information and    provided guidance to CCE
The Microsoft solution            establish interdependencies      regarding the deployment
enabled CCE to bring new          across the different projects.   and configuration options
technologies to everyone          SharePoint allows us to code     available in SharePoint
in the company, providing         and manage information so

                                                                                                   41
                                        Online. Sayeski says, “When        things like CCE’s HR process   Through the intranet, CCE
                                        you have a workforce like          improvement and self-service   employees are eager to be
                                        ours, 72,000 strong and            HR portal and provides a       part of the company direction
                                        geographically dispersed, that     communication platform for     and dialogue. Brett Kirkland,
                                        may or may not have access         CCE’s desk-based workers.      Collaboration Architect,
                                        to technology, it can be a         CCE has also increased         says, “The SharePoint Online
                                        challenge to ensure that the       employee engagement            search engine is ten times
                                        message of the organization        and education around           better. It allows us to make
                                        is getting through with the        corporate responsibility       items more discoverable, to
                                        clarity and the speed that         and sustainability through     check them in and out, and
                                        you want it to. We focused         the portal content, thereby    surface particular items that
     SOfTWARE & SERvICES                heavily on the use of video,       addressing the cultural        we consider pieces of content
       Microsoft Exchange Online        particularly with our CEO,         change initiative. Sayeski     that should rise to the top.
       Microsoft SharePoint Online      to ensure that some of our         says, “There have been         The SharePoint solution
       Microsoft OfficeCommunications   most critical messages were        some particular areas where    also gives IT more control
       Online                           being captured in a way that       we’ve seen that concept of     and governance over what
       Microsoft Office Live Meeting    the audience immediately           two-way dialogue playing       content is published and how
                                        understood. So combining           out very well. One is in our   it is ranked and profiled in
     SERvICES                           the power of video with the        corporate responsibility       search.”
       Microsoft Services               intranet gave us the ability to    and sustainability efforts
                                        touch many more people.”           where employees are            Key says, “Microsoft gave us
     PARTNERS                                                              sharing—actively sharing       an incredible platform that
       Slalom Consulting                Powerful Search with               their own ideas and their      allows us to do a number of
       Sapient                          enterprise Content                 own solutions within their     things, beyond hosting our
       Binary Tree                      Management                         own facilities about ways      portal. It provides workflow
       cococola                         The corporate intranet also        they’re generating energy      management and team
                                        serves as a central location for   effectiveness.”                collaboration across

42
geographies and time zones.”        desktop voice and video for
                                    multi-user applications and
the road Ahead                      adding more than 10,000
In phase II, CCE will be            BlackBerry users.
expanding the Microsoft
footprint to reach an               Kevin Flowers concludes,
additional 42,000 deskless          “There was huge excitement
workers who work in the             and energy around the CCE
field or in sales/distribution      partnership with Microsoft.
facilities. These employees         This has been one of the best
do not have computers but           IT partner projects CCE has
will be enabled in phase II to      experienced, and we have
have access to the intranet         the added value of a longer
via Microsoft SharePoint            IT roadmap with Microsoft
Online through computer             than if CCE had built the        www.slalomconsulting.com
workstations at their facilities.   solution on premises. This
Additionally, Microsoft is          project has exceeded our
co-developing a sales force         expectations from an IT
automation system that will         standpoint, showing how
further take advantage of           well an organization can lay a   www.sapient.com
SharePoint Online and enable        foundation and transform the
local merchandisers to be           way people communicate in a
more efficient in getting the       large company.”
things they need into the
outlets and stores. CCE will                                         www.binarytree.com
also be using Microsoft Office
Communications Server

                                                                                                43
                                   glaxosmithKliNe
                                    leads the Way With Microsoft
                                                                                                               GlaxoSmithKline (NYE: GSK)
                                                                                                               is a pharmaceutical industry
                                                                                                               leader: supplying a quarter of
                                          Online Services                                                      the world’s vaccines, spending
                                                                                                               over $13 million each day to
                                                                                                               research new medicines, and
                                                                                                               providing many of the world’s
 OvERvIEW                                                                                                      leading prescription medicines and
 Country or Region: Global                                                        We have chosen               consumer healthcare products. It
 Industry: Pharmaceuticals                                                        Microsoft Online             is estimated that GlaxoSmithKline
                                                                                  Services because             makes up seven percent of the
 Customer Profile                          Solution                               it promises to               world’s pharmaceutical market,
 Second largest pharmaceutical             GlaxoSmithKline chose to deploy        deliver a simple             and it is one of the few companies
 company in the world, GlaxoSmithKline     Microsoft Business Productivity        intuitive Information        committed to researching vaccines
 supplies a quarter of the world's         Online Suite – including Microsoft®    Workplace that               for the World Health Organization’s
 vaccines and produces some of the         Exchange Online, Microsoft® Office     should not only              three priority diseases – HIV/
 leading prescription medicines and        SharePoint Online, Microsoft® Office   bring value to the           AIDS, tuberculosis, and malaria.
 consumer healthcare products.             Communications Online, Microsoft®      company through              Yet, an internal strategic review
                                           Office Live Meeting and the            simplification, but          of their IT systems outlined a
 Business Situation                        Microsoft® Deskless Worker Suite.      provide an improved          need to take a new approach to
 GlaxoSmithKline needed to improve                                                user experience and          collaboration, support growing
 collaboration with partners, to           Benefits                               ultimately create a          markets, and address costs.
 improve effectiveness in growing            • Reduce Operational Costs           more productive              Illustrating its industry leadership,
 markets, to move away from                  • Drive Innovation                   GSK.                         GlaxoSmithKline found its solution
 customized solutions, and to lower the      • Improve Collaboration              Bill louV,                   in pioneering Microsoft Online
 cost of operations and investments.         • Simplify User Experience           Chief Information Officer,   Services solutions.
                                                                                  GlaxoSmithKline

44
SituAtion                          After an internal                Solution
In 2001, after the merger          strategic review in 2007,        GlaxoSmithKline evaluated
of GlaxoWellcome and               GlaxoSmithKline recognized       a number of data points
SmithKline Beecham,                several points of needed         before making a decision.
GlaxoSmithKline had to             improvement: the ability to      “The team reviewed, in
integrate two complex              collaborate with external        detail, what services were
IT systems. In order to            partners, effectiveness at       being offered at what service
successfully make this             supporting growing markets       levels around the globe, how
merger, they chose the Notes       outside of the UK and USA,       our existing technologies
platform SmithKline had            a requirement to move away       were used as application
strongly invested in over the      from customized solutions,       platforms,” says Ingo Elfering,
Exchange platform Glaxo            and a decrease in the            VP of Information Technology
utilized. This provided a single   operating and investment         Strategy, GlaxoSmithKline,
communications channel             costs. The review also noticed   “and how the various tools
and B2E platform across the        that the current Notes           worked together to create
global company. By using           platforms were reaching their    an integrated collaboration
several in-house developed         refresh cycles, necessitating    environment now and in
solutions, GlaxoSmithKline         action and renewed               the future.” GlaxoSmithKline
supported collaboration            investment for the next          conducted several user            We wanted to build
and Lotus Notes Sametime           three years. To research their   studies, but the focus            the business case first
for instant messaging. In          options, GlaxoSmithKline         wasn’t just on the present.       so that it would really
conjunction with the Lotus         constructed a cross-functional   The future of changing            be a slam dunk in the
Notes and Domino system,           team of representatives          pharmaceutical user profiles,     approval process
GlaxoSmithKline also used          from the various global IT       devices, and software was         Bill louV,
Google’s Postini mail filtering    organizations, partners in       also a strong factor.             Chief Information Officer,
service.                           the business units, and major                                      GlaxoSmithKline
                                   growth markets.

                                                                                                                                   45
                                   In the conservative industry     Online Suite – including         to its entire spectrum of
                                   of pharmaceuticals,              Microsoft® Exchange Online,      information workers. This
                                   GlaxoSmithKline was looking      Microsoft® Office SharePoint     suite offers those who don’t
                                   to put together the facts.       Online, Microsoft® Office        have a laptop the ability
                                   While GlaxoSmithKline was        Communications Online,           to go to a Web kiosk. It’s a
                                   looking for a productivity and   Microsoft® Office Live           lighter version and a more
                                   collaboration increase from      Meeting and the Microsoft®       manageable option for the
                                   the switch, the first priority   Deskless Worker Suite to         sales force at a lower cost
                                   was to build a strong business   deploy to all of its employees   to GlaxoSmithKline. The
                                   case. “We wanted to build the    worldwide. Everything would      Deskless Worker Suite will
                                   business case first so that it   be hosted by Microsoft           be deployed for 15,000 of
                                   would really be a slam dunk      at Microsoft data centers        GlaxoSmithKline’s employees,
     Moving to Online              in the approval process,” says   around the globe.                and unlike Google Apps,
     Services will enable          Bill Louv, Chief Information                                      this enables both the full-
     us to reduce our IT           Officer, GlaxoSmithKline. The    Through Online Services,         service Online Services and
     operational costs             approval process considered      Microsoft offers the ability     Deskless Worker Suite to be
     by roughly 30% of             the risk of patient safety       to have fully functioning        managed in a central location
     what we’re currently          and confidential data, but a     applications with a lean         determined by the
     spending…. A variable         strong business case led to      presence. The software will      company itself.
     cost subscription model       the approval of innovative       operate in the same capacity
     for these collaborative       cloud services with Microsoft.   in a hosted solution as it       BenefitS
     technologies allows us                                         would if it were implemented     The global implementation of
     to more rapidly scale or      GlaxoSmithKline chose to         on-premise. By deploying the     Microsoft Online Services at
     divest our investment as      replace the Lotus Notes,         Business Productivity Suite      GlaxoSmithKline is intended
     necessary                     Domino, and Postini              with the Deskless Worker         to have numerous advantages
     AlAStAir roBertSon,           services with the Microsoft      Suite, GlaxoSmithKline is able   for the company including:
     VP of Information Workplace   Business Productivity            to offer total functionality     reducing operational costs,

46
driving innovation and            Information Workplace.           around communication
collaboration, expanding          The difference for               and collaboration to
external collaboration,           GlaxoSmithKline means            Microsoft. This ensures that
and simplification of user        putting more money back          we can focus on our core
experience. This solution is      into the business.               competencies and also that
much more effective than                                           we have an ‘evergreen’ IT
the Notes and Google Apps         drive innovation                 strategy where the latest
combination in driving lower      While GlaxoSmithKline is able    technologies are always at
costs, more collaboration, and    to reduce costs with Microsoft   our disposal via the cloud,”
greater accessibility.            Online Services, productivity    says Elfering.
                                  is not harmed, but enhanced.
reduce operational Costs          Through Microsoft Online         The Microsoft Online Services
The use of Microsoft Online       Services, GlaxoSmithKline        model drives this innovation      GlaxoSmithKline has
Services offers a dramatic        can utilize the IT department    as well as allows the increased   approximately 100,000
yearly reduction in costs.        for key projects instead of      flexibility in moving forward.    employees, hundreds
“Moving to Online Services        tasking them with managing       The subscription service can      of business partners,
will enable us to reduce our IT   the infrastructure software      be tailored to fit growing        and locations around
operational costs by roughly      or servers.                      and changing needs. So that       the world, so effective
30% of what we’re currently                                        when GlaxoSmithKline adapts       collaboration is critical to
spending. The ability to          The model allows for             to changing market, its           our business. We have
introduce a variable cost         increased innovation             software adapts too.              chosen Microsoft Online
subscription model for these      where it counts. “The team                                         Services…
collaborative technologies        needed the ability to focus      expand external                   Bill louV,
allows us to more rapidly         internal IT on driving further   Collaboration                     Chief Information Officer,
scale or divest our investment    innovation that differentiates   GlaxoSmithKline is                GlaxoSmithKline
as necessary,” confirms           GSK in the market while          aggressively driving a more
Alastair Robertson, VP of         offloading innovation            externally collaborative

                                                                                                                                    47
                                         business through all            Simplification of User           because it promises to
                                         practices: research and         experience                       deliver a simple intuitive
                                         development, manufacturing,     Moving away from                 Information Workplace that
                                         and sales. With Microsoft       the customized                   should not only bring value
                                         Online Services, this           solutions environment,           to the company through
                                         effort can be maximized         GlaxoSmithKline was looking      simplification, but provide
                                         without compromises in          for a simple solution that       an improved user experience
                                         the security and integrity      would effectively extend         and ultimately create a more
                                         of sensitive information.       to the many branches,            productive GSK.”
                                         The information is stored       regions, and employee types
                                         in the cloud, allowing          internally. The company
                                         for a more direct form of       needed a solution that would
                                         access than if it were stored   also translate externally to
                                         directly on an internally       increase collaboration and
     SOfTWARE AND SERvICES               maintained server. Also, as     the resulting innovation. That
       Products                          Louv notes, the Microsoft       is why GlaxoSmithKline chose
       Microsoft Data Centers Services   brand is more common and        the Microsoft solution.
     SERvICES                            therefore easily interfaced
       Microsoft Exchange Online         than its competitors. This      “GlaxoSmithKline has
       Microsoft SharePoint Online       supports collaboration          approximately 100,000
       Microsoft Office Communications   between partners and            employees, hundreds of
       Online                            GlaxoSmithKline, allowing       business partners, and
       Microsoft Office Live Meeting     for a more innovative and       locations around the world,
       Online                            competitive business.           so effective collaboration
       Microsoft Deskless Worker Suite                                   is critical to our business,”
                                                                         says Louv, “We have chosen
                                                                         Microsoft Online Services

48
                                                                                                                  Headquartered in Pune, India, KPIT
                                                                                                                  Cummins is an emerging leader
                                                                                                                  in providing consulting, solutions

                                                     CummiNs
                                         Kpit servers to 20, reduces costs
                                         shrinks 120
                                                                                                                  and services in the fields of finance,
                                                                                                                  accounts and manufacturing. It is
                                                                                                                  one of the world’s first few companies
                                         and cuts energy usage with virtualization                                to achieve the BS25999:2007,
                                                                                                                  ISO9001, ISO 27001:2005,
OvERvIEW                                                                                                          CMMI- level 5 certifications. With
Country or Region: India                                                                                          accumulation of servers, it was
Industry: IT Services                                                                                             becoming increasingly difficult for
                                                                                 Virtualization has               the company to manage costs and
Customer Profile                         Solution                                helped to reduce the             handle issues like high expenditure
KPIT Cummins is a global IT              To optimize the growing data            provisioning time for            on technology hardware, software
consulting and product engineering       centers operations, KPIT Cummins        new applications by              licensing, power consumption, and
partner company focused on the           implemented a virtualization solution   almost 6-8 weeks                 physical space. Hence, KPIT Cummins
Manufacturing (Automotive, Industrial    centered on Windows Server® 2008        helping us to deploy             decided to migrate operations
and Hi-Tech) and Diversified Financial   Hyper-V™ technology to consolidate      applications within              to Windows Server® 2008 with
Services industries.                     hardware, minimize rack space and       4 hours on the                   Hyper-V™ technology to take
                                         ownership and software cost.            virtualized platform.            advantage of server virtualization
Business Situation                                                               MAndAr MArulkAr,                 efficiencies. With its new optimized
KPIT Cummins wanted to cut               Benefits                                Head, Technical Infrastructure   infrastructure, the company can grow
capex and opex expenses, reduce            • Consolidates multiple servers       Management Services, KPIT        faster and dramatically reduce IT
the number of physical servers it          • Reduces power consumption           Cummins                          costs. The company has virtualized
operated, and optimize system              • Reduces opex and capex cost                                          120 of its physical servers to 20
flexibility and maintenance to best        • Improves service quality                                             servers and thus has optimized space
serve its business requirements.                                                                                  and power use.

                                                                                                                                                      49
                             SituAtion                         India. Besides, it has onsite   operations centre that takes
                             Founded in 1990, KPIT             presence in United States,      care of network and perimeter
                             Cummins specializes in            United Kingdom, Germany,        security and client services
                             consulting in Governance          France, Japan, Singapore,       which takes care of desktop
                             and Regulatory Compliance,        South Africa and Poland.        and peripheral devices
                             high end transactional BPO/                                       support.
                             KPO and Enterprise Support        KPIT Cummins operates
                             to global customers. The          multiple data centers in        KPIT Cummins realized that
                             company is focused on co-         its Pune and Bangalore          more than 150 servers had
 We have trimmed             innovating domain intensive       centers. To help meet the       reached the end of their life,
 our physical server         technology solutions for          needs of more than 5000         they had hardware which
 holdings – from 120         manufacturing corporations        users across the globe, the     was older the 3 years. At the
 to merely to servers.       in automotive, industrials, hi-   company manages more            same time, there were more
 Currently the entire        tech verticals and diversified    than 200 servers, storage       than 50 servers that had less
 setup is running on 20      financial services. It has        area networks and business      than 30 percent utilisation.
 infrastructure servers      established state of art eco      applications such as SAP        Initially the managers planned
 virtualized on Microsoft    friendly facility equipped        R/3 ERP, Microsoft Exchange     to replace some of them by
 Hyper-V Server 2008.        with advanced technologies,       Server 2007 with unified        new hardware and renew the
 The expenses on server      processes, and equipment -        communication. In addition,     annual maintenance contract
 boxes have dropped          complying with international      it manages configuration        (AMC) of remaining servers,
 drastically by 40 percent   standards.                        management servers, project     but these options required
 of our data center                                            management applications,        considerable capital and
 budget.                     With 4500 employees               intranet and portal             operating expenses. “Our
 SAndeeP GAndHi,             worldwide and more than           applications, development       goal was to deploy Green
 Sr. Manager, Data Center    95 active global clients, the     and testing servers             IT solutions, reduce     and
 Operations, KPIT Cummins    company has offshore centers      supporting customer projects.   opex expenses by at least
                             in Pune and Bangalore in          The company has a network       15 percent and improve

50
asset utilization by 20         maintenance to best serve its      The IT team at KPIT Cummins
percent,” explains Mandar       business requirements.             evaluated several products,
Marulkar, Head, Technical                                          including the Hyper-V™
Infrastructure Management       Solution                           technology included with
Services, KPIT Cummins. “The    KPIT Cummins recognized            the Windows Server® 2008
growing number of servers,      that it could use virtualization   operating system, VMware,
however, was resulting in       technology to reduce the           and others. Considering
more energy consumption         number of physical servers in      the business requirement,
and increased data centre       its data center, and enhance       licensing model, cost factor
energy consumption.”            the availability of applications   and technical support
                                and services. Shrikant             available, the company
With growing server network,    Kulkarni, CIO, KPIT Cummins        ultimately decided to deploy
the company was incurring       concluded that rather than         Hyper-V as it provides all the
huge costs for technology       paying for many under-             functionality needed and
hardware, software licensing,   utilized server machines or        meets all the requirements.
and power consumption.          less efficient server machines,                                      By reducing the number
It recognized that its IT       each dedicated to a specific       Deployment took place in          of physical servers with
environment had become          workload, server virtualization    Pune and Bangalore centers.       the help of Microsoft
too large and complex to        would allow consolidating all      The process commenced             Hyper-V solution, we
be managed effectively and      the workloads onto a smaller       in April 2009 and was 90          are able to reduce the
efficiently in a traditional    number of more fully used          percent completed by Oct          power consumption
manner. The company also        machines. Not only this,           2009. The implementation          enormously and thus
wanted to cut back on the       he convinced the business          dramatically prune its physical   helped the company
number of physical servers      users the benefits of this         server holdings, from 120 to      going green.
it operated, improve server     technology.                        20 systems. The company can       SAndeeP GAndHi,
performance, and optimize                                          now efficiently deploy, scale,    Sr. Manager, Data Center
system flexibility and                                             and manage a virtualized          Operations, KPIT Cummins

                                                                                                                                51
                                      server infrastructure without     Management Services, KPIT     system by eliminating
                                      the extra cost of a third-party   Cummins.                      some of the servers. By
                                      solution.                                                       using Hyper-V to virtualize
                                                                        BenefitS                      servers, the company is
                                      Initially the team faced          By using Hyper-V              able to significantly reduce
                                      some issues to understand         technology to virtualize      hardware costs and decrease
                                      the technology, manage            its physical servers, KPIT    the hardware footprint at
                                      virtualized setups and            Cummins optimized its         its data centers. Now the
                                      convince the business users       server environment, cut       IT department can support
                                      to move the application on        hardware costs and power      the business with less
     Server virtualization has        virtualized platform. But         consumption, enhanced         hardware, which means lower
     brought in significant           later on, after 3-4 application   server reliability and        equipment costs, reduced
     reduction in capital             migrations, the team              utilization, and reduced      electrical consumption for
     expenditure. We have             was quite comfortable in          maintenance and support       server power and cooling,
     consolidated physical            migrating the applications        costs.                        and less physical space.
     servers by more than             without any down
     40 percent, reduced              times and dynamically             Consolidates                  “We have trimmed our
     physical rack space by           allocating appropriate            Multiple Servers              physical server holdings
     60 percent resulting in          resources. “Virtualization        KPIT Cummins decided          - from 120 to merely 20
     savings of more than 40          has helped to reduce the          to use Microsoft Hyper-V      servers. Currently the
     percent in data center           provisioning time for new         solution for virtualization   entire setup is running on
     budget.                          applications by almost 6-8        instead of paying for         20 infrastructure servers
     MAndAr MArulkAr ,                weeks helping us to deploy        many under-utilized server    virtualized on Microsoft
     Head, Technical Infrastructure   applications within 4 hours       machines. Consolidations      Hyper-V Server 2008. The
     Management Services,             on the virtualized platform,”     helped in running multiple    expenses on server boxes
     KPIT Cummins                     says Mandar Marulkar, Head,       applications on the same      have dropped drastically by
                                      Technical Infrastructure          server in single operating    40 percent of our data center

52
budget,” elaborates Sandeep     footprint in turn giving cost      “Server virtualization has        The time taken in tracking
Gandhi, Sr. Manager, Data       savings as a part of reducing      brought in significant            the AMCs and other issues
center operations, KPIT         energy consumption. Along          reduction in capital              with servers is now brought
Cummins.                        with reduced power                 expenditure. We have              down considerably. Fewer
                                requirements, lesser cooling       consolidated physical servers     people are required to
reduces Power                   facilities need to be deployed     by more than 40 percent,          mange the lesser number of
Consumption                     for the servers.                   reduced physical rack space by    servers.
The significant reduction in                                       60 percent resulting in savings
servers contributes hugely      reduces opex                       of more than 40 percent in        During the consolidation
to KPIT Cummins “green”         and Capex Cost                     data center budget,” says         process, the IT team got
initiatives. “By reducing the   The operating and capital          Mandar Marulkar, Head, TIMS,      a chance to review all the
number of physical servers      cost of deploying new servers,     KPIT Cummins.                     existing applications and this
with the help of Microsoft      and maintaining and running                                          helped in deactivating some
Hyper-V solution, we are        more than 200 servers is           improves Service Quality          of the old development and
able to reduce the power        much higher than fully             “Consolidation and                testing servers, thus improving
consumption enormously and      utilizing 20 servers for all the   virtualization reduced the time   the service. Consolidation,
thus helped the company in      applications. Virtualization       needed to provision servers       virtualisation and deactivation
going green,” says Sandeep      has helped consolidating           from several months to just 4     of the applications helped
Gandhi, Sr. Manager, Data       practically 10 servers into a      hour, restored data in 10% of     in reutilisation the existing
center operations, KPIT         single virtual server. Loading     the time previously required,     servers more efficiently for
Cummins.                        different operating systems        and created a highly reliable     critical applications avoiding
                                and applications on a single       environment, improving            new hardware investments.
Consolidation and               virtual server has resulted        its quality of service,” says     With reduced hardware,
virtualization has aided the    into improving the utilisation     Mandar Marulkar, Head, TIMS,      lesser operating cost, the
company in its objective to     up to 70 percent of the less       KPIT Cummins.                     company can offer better
deploy green data centre        utilised servers.                                                    and competitive prices to its
solutions by reducing carbon                                                                         customers.

                                                                                                                                   53
                                           3m lauNChes                                                     A recognized world leader

                                           Web-based                                                       in technology research and
                                                                                                           development, 3M wanted to

                                           visual                                                          make its decades of expertise in
                                                                                                           the workings of the human visual

                                           atteNtioN                                                       system available as a service to
                                                                                                           customers. Using the Windows
 OvERvIEW
 Country or Region: United States
 Industry: Manufacturing - High tech
                                           serviCeimpact
                                           to heighten design
                                                                                                           Azure™ platform, 3M created a
                                                                                                           Web-based application that gives
                                                                                                           designers the ability to invoke
 and electronics                                                                                           complex algorithms to analyze
                                                                                                           the effectiveness of a design,
 Customer Profile                          Solution                                                        based on how the human eye will
 With 75,000 employees and operations      3M used the Windows Azure™              Windows Azure           respond. By hosting its application
 in more than 60 countries, 3M develops    platform to deliver the VAS solution    helps 3M customers      in Microsoft® data centers, 3M
 an extensive range of consumer            to customers, taking advantage of       take advantage of       has made an innovative service
 and industrial products. Well-known       Microsoft® data center infrastructure   complex algorithms      available to a global audience,
 3M brands include Scotch, Post-it,        and service management to keep          that encapsulate 30     while minimizing its investment in
 Thinsulate, and Scotch-Brite.             performance high and costs low.         years of research       hardware infrastructure and ongoing
                                                                                   and get simple,         administration. The solution,
 Business Situation                        Benefits                                powerful results        which permitted developers to
 3M wanted to make its Visual                • Easy, efficient deployment          from their browser,     evaluate frequent iterations of the
 Attention Service (VAS) available           • Lower costs, high scalability       almost instantly.       application, helped the company
 to customers as a Web-based                 • Excellent customer solution         terry Collier,          speed time-to-market for its
 application, with high performance,                                               Marketing Manager, 3M   service and achieve higher quality
 scalability, and low infrastructure and                                                                   results, faster than in a traditional
 management costs.                                                                                         development environment.

54
SituAtion                         of research that is used in        make the process for designing
From well-known brands such       many 3M products - such as         things that people interact with
as Post-it products, Thinsulate   reflective materials used in       visually more science-based
insulation, and Nexcare first     roadway signage, emergency         and iterative to bring about
aid, to high-strength bonding     exit markings, and display         more effective results."
tapes, industrial abrasives,      and graphics technologies - is
and traffic safety systems,       the understanding of how           Terry Collier, Marketing
3M products are ubiquitous        the human visual system            Manager at 3M, adds, "In our
around the world. Founded in      works. The company’s vision        market research, we found
1902, 3M is a science-based       scientists, working in its         that designers spend a lot of
company and has developed         corporate research labs,           time creating, honing, and
thousands of innovative           study how the human brain          optimizing their images but
products for a broad range        processes visual information       they can be challenged by the
of markets. The company           and have developed complex         fact that they don’t ever truly    We knew there was
now operates in 60 countries      algorithms for predicting what     know how people are seeing a       a need to make the
and its worldwide sales in        a person will notice in a visual   design before it’s completed."     process for designing
2008 were more than U.S.$25       scene.                                                                things that people
billion.                                                             3M’s goal was to provide           interact with visually
                                  Bill Smyth, Business Manager       designers with predictive          more science-based and
3M supports more than             at 3M, says, "Our job, on the      measurements about how             iterative to bring about
40 different technology           business and marketing side,       their creations - from a logo      more effective results.
platforms and has invested        is to make the most of these       design, to a Web site layout,      Bill SMytH,
years of scientific research      capabilities." To this end,        to the placement of an             Business Manager, 3M
in developing them. In fact,      Smyth and his colleagues           electronic screen in a hotel
7,000 of the company’s            identified a use for these         lobby - would be perceived
employees are dedicated           predictive algorithms. "We         by their audience. Also, it was
solely to research. One area      knew there was a need to           critical that this information

                                                                                                                                   55
                                be immediately available.         remember. The prototype,                       markings such as those seen
                                "We needed to be able to          a Web-based application                        on a heat map, which areas
                                provide designers with access     that was hosted on 3M data                     of the image were most likely
                                to this information directly      center servers, enabled users                  to attract a viewer’s attention.
                                from their computer desktop,      to upload photographs of a                     (Figure 1.)
                                multiple times throughout the     physical environment or a
                                design process, so they could     graphic design to the VAS.                     But 3M wanted the
                                alter their designs in direct     The application’s processing                   application to work efficiently
                                response to the analyses,         engine then evaluated the                      as part of its customers’
                                rather than engaging in           image for its 'visual saliency'                existing design processes. To
                                lengthy focus group sessions      and returned a map of the                      become a viable offering, the
                                that happen after a design        image that indicated, using                    VAS application had to be
                                reaches a near-final state of
                                completion," says Collier.

     The similarities between   The company developed a
     Windows Azure and our      prototype of a Web-based
     current development        application, called the 3M
     environment gave us        Visual Attention Service
     a huge advantage and       (VAS). The service makes
     made the decision easy.    it possible for designers to
     JiM GrAHAM,                test the effectiveness of their
     Technical Manager, 3M      content using visual attention
                                models, which are based on
                                algorithms that predict the
                                elements of a scene that a
                                viewer is likely to see and to
                                                                   figure 1. 3M VAS image map indicating areas most likely to attract viewers’ attention
56
available to customers in real    Solution                          Windows Azure provides
time, be capable of processing    3M believed that the most         developers with on-demand
images and returning near-        effective approach would be       compute and storage to
immediate results, of scaling     to operate the VAS application    host, scale, and manage Web
rapidly during peak design        from a "cloud computing"          applications on the internet
times, such as just prior to      environment, in which the         through Microsoft data
holiday advertising deadlines,    solution would be hosted          centers.
and it had to carry a low         and managed on the Internet
up-front investment risk for      and reside in an external         From its experience with
3M. "Especially in the current    partner’s data centers. The       the Community Technology
economic environment, we          company evaluated hosted          Preview (CTP) of Windows
have to be very careful about     infrastructure offerings from     Azure, a Microsoft program
how we invest our capital,"       Microsoft and others, but, says   for early adopters to
says Smyth."We didn’t want        Graham, "3M has for a long        experiment with prerelease
to invest in costly data center   time relied on Microsoft®         technology, Graham’s team      SQL Azure is of great
infrastructure and capacity       tools and technologies to         thought that the solution      value to 3M because
that, much of the time, would     support the development           was a good fit for 3M. "The    it takes the database
sit idle and unused."             of our technology. For            similarities between Windows   management piece off
                                  this reason, 3M chose the         Azure and our current          our plate.
Jim Graham, Technical             Windows Azure™ platform           development environment        JiM GrAHAM,
Manager at 3M, adds,              from Microsoft." Windows          gave us a huge advantage       Technical Manager, 3M
"We needed to be able to          Azure is a cloud services         and made the decision easy,"
provide a high-performance        operating system that             says Graham. 3M relied on
application to customers          serves as the development,        the Microsoft Visual Studio®
everywhere, without               service hosting, and service      2008 development system to
deploying data centers            management environment for        produce the VAS application,
around the world."                the Windows Azure platform.       including Microsoft Visual

                                                                                                                           57
                            Studio Team System 2008          Azure specifications. "We       environment," explains
                            Team Suite and Microsoft         developed the whole user        Graham. The VAS interface,
                            Visual Studio Team System        experience, from the ground     and the Web site where
                            2008 Team Foundation             up, on Windows Azure,"          users go to access it, was
                            Server. It also used Microsoft   says Graham. His team also      developed using Microsoft
                            Expression Blend™ 3 design       used the Windows Azure          ASP.NET 2.0, part of the
                            software and Microsoft           development fabric, which it    Microsoft .NET Framework.
                            SQL Server® 2008 data            used to simulate the Windows    Graham’s team used the
                            management software. "We         Azure environment on local      Microsoft Silverlight™ browser
                            saw that Windows Azure           computers, making it easy       plug-in to build controls into
                            would work well with our         to run and test the VAS         the application that enable
                            Visual Studio development        application before              users to edit and modify
                            environment. We also saw the     deploying it.                   images they submit to the
                            opportunity to take advantage                                    VAS processing engine. The
 We will be able to         of a new technology platform     VAS incorporates a              Silverlight-enabled controls
 deploy much faster on      that would allow us to deploy    number of unmanaged,            are embedded into the ASP.
 the Microsoft technology   in different countries, with     high-performance image-         NET application framework,
 platform through           rapid scaling capabilities       processing software libraries   creating a seamless experience
 Windows Azure than         and no up-front capital          developed by 3M. "The           for users. "Users don’t have
 with any other cloud       investment," says Graham.        Windows Azure development       to switch between different
 solution we evaluated.     To prepare the VAS application   fabric helped us perform        interfaces to perform certain
 JiM GrAHAM,                for commercial release, 3M       quick iterations of code,       functions," explains Graham.
 Technical Manager, 3M      built a new user. interface.     allowing us to overcome
                            The timing coincided with        many of the hurdles we          The VAS application relies on
                            the CTP of Windows Azure,        might not have seen until       the Access Control Service
                            so Graham’s team developed       we had deployed to a more       feature of Windows Azure
                            the interface to Windows         formal staging or production    to authenticate users to the

58
system, providing access to                image processing engine. SQL       off our plate," says Graham.
various components of the                  Azure, as part of the Windows      3M uses Windows Azure
service based on a user’s                  Azure platform, provides           data storage services to          3M VAS and Windows
credentials. 3M used Microsoft             automated management               store image files and analysis    Azure will help our
SQL Azure, a cloud-based                   capabilities, including built-in   generated by the engine,          customers spend their
relational database platform               data protection, self-healing,     and it uses the Queue service     marketing dollars more
that is built on SQL Server                and disaster recovery - crucial    feature to provide users with     wisely.
technologies, to manage the                for protecting customers’ data.    high-performance and near-        Bill SMytH,
images that users upload. SQL              "SQL Azure is of great value       immediate response times          Business Manager, 3M
Azure also is used to deliver              to 3M because it takes the         even when the application is
analytical results from the                database management piece          inundated with high traffic
                                                                              during peak load times.
  figure 2. Diagram of 3M VAS deployed on Windows Azure
                                                                              In short, explains Graham,
                                                                              "With Access Control, we can
                                                                              create a pipeline from the ASP.
                                                                              NET-based interface, to the
                                                                              Queue service, to the VAS
                                                                              engine where the analysis
                                                                              is performed using the
                                                                              algorithms our scientists have
                                                                              developed." (Figure 2.)

                                                                              Currently, VAS helps customers
                                                                              evaluate any number of
                                                                              graphical or photographic
                                                                              images that they choose to

                                                                                                                                         59
                                            upload to the application.       responds. By using a cloud          fully supported in Windows
                                            In future versions, 3M plans     service, 3M experienced an          Azure. And, the Windows
                                            to provide customers with        efficient deployment and            Azure development fabric
                                            the ability to create entire     lowered its infrastructure costs.   provided a great simulation
                                            databases of test images,        The highly scalable Web-            environment in which we
                                            enabling users to experiment     based service will make it          could see our work in progress
                                            with, for example, the content   possible for 3M customers to        and incorporate feedback-
                                            of an advertisement in a         optimize designs in response        early and often. We rapidly
     SOfTWARE AND SERvICES                  variety of design scenes - or,   to scientific analysis, thereby     deployed interim releases
       Windows Azure Platform               conversely, a number of          helping to make the most of         to stakeholders within the
       Windows Azure                        different types of advertising   their marketing dollars.            company. The Windows Azure
       Access Control Service               content in one particular                                            development fabric has been
       Microsoft SQL Azure                  scene. 3M plans to release       Easy, Efficient Deployment          a significant time savings."
       Microsoft Server Product Portfolio   a final version of the VAS       The close connection between
       Microsoft SQL Server 2008            application running on           Windows Azure and the 3M            In addition, once the VAS
       Microsoft Visual Studio              Windows Azure to customers       Visual Studio development           application development is
       Microsoft Visual Studio Team         by mid-November 2009.            environment helped the              complete and the service is
       System 2008 Team Foundation                                           company achieve a rapid             made publicly available on
     SERvER                                 BenefitS                         deployment of the VAS               Windows Azure, 3M will be
       Microsoft Visual Team System         Using the Windows Azure          application. "We were able          able to quickly release product
       2008 Team Suite                                                                                           updates and enhancements.
                                            platform, 3M developed a         to wrap our core technology
       Microsoft Expression
                                            highly innovative Web-based      into Windows Azure in less          "We will be able to deploy
       Microsoft Expression Blend 3
                                            service that can dramatically    than eight weeks. It was very       much faster on the Microsoft
       Technologies
                                            alter and improve the process    fast, "says Graham. "The tools      technology platform through
       Microsoft ASP.NET 2.0
                                            for designing images and         and technologies we were            Windows Azure than with
       Microsoft .NET Framework
                                            environments that rely on        already using, for instance         any other cloud solution we
       Microsoft Silverlight
                                            how the human visual system      forms authentication, are           evaluated," says Graham.

60
lower Costs,                      data from one region to         viewer’s response to a scene.     impact of the designs," says
High Scalability                  another, without having to      "Windows Azure helps 3M           Graham.
With Windows Azure, 3M            replicate databases, and        customers take advantage
capitalizes on a pay-as-you-      without all of the service      of complex algorithms that        "3M VAS and Windows Azure
use pricing model to minimize     management we would             encapsulate 30 years of           will help our customers spend
hosting costs and maximize        otherwise have to engage in."   research and get simple,          their marketing dollars more
profits. "With Windows Azure,     Graham compares the time        powerful results from their       wisely," explains Smyth. "In
we get a highly scalable          and cost savings that result    browser, almost instantly,"       our research, we found that
environment, pay only for         from the use of Windows         says Collier.                     customers value having an
the resources we need, and        Azure as a cloud services                                         analytical, science-based
relieve our IT staff of the       platform to other endeavors     Graham says, "We wanted to        assessment of their designs. It
systems management and            at 3M. "We have full-time       make it so simple for our users   takes it out of the ego space
administration responsibilities   staff members who are solely    that they didn’t even have to     of subjective evaluations
of supporting a dynamic           dedicated to managing our       step outside of the workflow      from colleagues or from their
infrastructure," says Graham.     hosted solutions. Were we       they are used to. With the        own clients. We believe that
                                  to host the VAS application     VAS application running on        with the Windows Azure -
3M found SQL Azure to             ourselves, we would have to     Windows Azure, users can          based solution, we can have
be especially beneficial          increase our support staff."    open a Web browser and            a significant impact on the
because it can use it to offer                                    analyze any number of files,      financial aspects of marketing-
the VAS application to a          excellent                       straight from their computer."    based design."
global audience, without the      Customer Solution               As VAS becomes an integral,
expense of establishing and       Most importantly, 3M used       natural element of the design
maintaining regional data         Windows Azure to deliver a      process for 3M customers,
centers. Graham explains,         new technology that could       the company expects to
"With SQL Azure, we can           change the design process       "significantly reduce the time
deploy internationally without    paradigm, especially in areas   and cost of design iterations
having to migrate customer        where success hinges on a       - while improving the overall

                                                                                                                                      61
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        i have Cloud poWer.




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www.cloudpower.in                                                                                    63
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solutioNs for the Cloud.
oN earth.
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