Microsoft Azure - Final Project Report-Aungar (to submit)lin/CPET575_MangOfTech/2017-Spring/3...Amazon Web Services (AWS) Adobe Systems, Netflix, Blackboard, SAP & Snap Inc. Google

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Microsoft AzureCLOUD COMPUTING & INTERNET OF THINGS (IOT):

BUSINESS MODEL & COMPETITIVE ADVANTAGE

CPET 575: Management of Technology Final Project Presentation Aungar Loung

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May 02, 2017

Presentation Outline Case Study Questions Executive Summary Cloud Computing Types of Cloud Services Types of Cloud Deployments Microsoft Azure

Products & Services Business Model Challenges & Problems Azure Architecture Overview Competitor, Competitive

Technologies & Customers

2 FY 2016 Earnings Report Comparative SWOT Analysis

for Azure & AWS Strategy between Azure &

AWS References

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Case Study Questions

What types of business model does Microsoft Azure adopt and practice?

How do Microsoft Azure’s core architecture look like? What competitive technologies and advantages does

Microsoft Azure have over Amazon Web Services (AWS)? What kind of challenges and problems does Microsoft Azure

have to experience? What different service strategy does Microsoft Azure have

compared to Amazon Web Services (AWS)?

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Cloud Computing

Cloud computing “the delivery of computer services over the Internet

(the cloud)” Server, Storage, Databases, Networking, Software

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cinchit.com

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Cloud Computing (Cont.)

Top BenefitsCost - Eliminates the capital expense Speed - Self service and on demand are readily available Global Scale - Ability to scale elastically Productivity - Eliminates the need for many tasks Performance - Regularly upgraded & run on latest version

of fast and efficient computing hardware Reliability - Easier Business continuity, data backup and

disaster recovery

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Types of Cloud Services Infrastructure as a Service (IaaS) Platform as a Service (PaaS) Software as a Service (SaaS)

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azure.microsoft.com

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Types of Cloud Services (Cont.) Infrastructure as a Service (IaaS)

Customers rent IT infrastructure Servers & virtual machines (VMs), storage, networks,

operating systems

Platform as a Service (PaaS) Provide more functional and flexible on-demand

environment for developers

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Types of Cloud Services (Cont.) Software as a Service (PaaS)

Offers a way for delivering software applications over the Internet & users can connect to the application

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qarea.com

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Types of Cloud Services (Cont.) Identity as a Service (IDaaS)

an authentication infrastructure that is built, hosted and managed by a third-party service provider

IDaaS can be though of as a single sign-on (SSO) for the cloud

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Cloud Computing (Cont.) Types of Cloud Deployments

Public Cloud Owned and operated by a third-party cloud service

provider, such as Microsoft Azure and Amazon Web Services (AWS)

Private Cloud Used exclusively by a single business or organization Physically located on on-site datacenter Maintained on a private network

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Types of Cloud Deployments (Cont.)

Hybrid Cloud Combination of public and private clouds Data and applications can be shared between the two

clouds Greater flexibility and more deployment options

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Microsoft Azure Satya Nadella CEO in 2014

EVP of Microsoft’s Cloud and Enterprise groupCloud services started performing great

Microsoft AzureAnnounced in 2008, released in 2010 as “Windows Azure” Renamed in 2014 to “Microsoft Azure”Code name for original project was “Project Red Dog” “Red Dog OS” to “Windows Server”

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Microsoft Azure (Cont.)

What’s Microsoft Azure?Collection of cloud-computing services To build, deploy, and manage applications and

services through Microsoft-managed data centers

Services SaaS, PaaS, IaaS ... & IDaaS Supports a wide range of programing languages,

tools & frameworks

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Products & Services A total of 69 products Some most popular products:

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IoT Hub Connect, monitor, and

control billions of IoTAssets

IoT Suites Capture and analyze

untapped data to improve business results

Event Hubs Receive telemetry from

millions of devices

Notification Hubs Send push notifications

to any platform from any back end

Machine Learning Easily build, deploy,

and manage predictive analytics solutions

Mobile Apps Build and host the

backend for any mobile app

Stream Analytics Real-time data stream

processing from millions of IoT devices

Cloud Services Create highly-available,

infinitely-scalable cloud applications and APIs

Storage Durable, highly

available, and massively scalable cloud storage

Multi-Factor Authentication Add security for your

data and apps without adding hassles for users

Traffic Manager Route incoming traffic

for high performance and availability

Automation Simplify cloud

management with process automation

microsoft.com

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Business Model 15

Two basic models Independent Software Vendor (ISV) System Integrator (SI)

microsoft.com

Business Model (Cont.) 16

Two basic models (Cont.)

Independent Software Vendor (ISV) Own Microsoft Azure subscription Offer solution as SaaS to their customers Customers pay them for services ISV pay for Azure infrastructure (VM)

microsoft.com

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Two basic models (Cont.)

System Integrator (SI) Customers own Microsoft Azure

subscription Acquire assistance from SI Opportunity for ISV to provide

services Microsoft offers sale incentive to

committed ISVmicrosoft.com


Pay-as-You-GoNo commitmentNo upfront costsNo termination fees Pay only for what used

microsoft.com

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Challenges & Problems

1. Shared technology vulnerabilitiesAttackers can puncture public cloud & steal data Public cloud are more at risk & more targeted than private

cloud Easier to access public cloud’s Application Program

Interfaces (APIs)

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2. Abuse of cloud services Exploitation of Agility, scalability & flexibility of cloud

services IaaS as “malware platform” to extract digital currencies Illegal content are stored in cloud storageAzure shuts down about 70,000 VMs every month

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3. Malicious insidersCloud service employees who have access to codes Exploitable developers who write cloud codesOperators who deploy less secure codes

They are all a “security threat”.

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4. Denial of service (DoS)Distributed Denial of Service (DDoS) causes DoS for

legitimate users Flooding the server’s request queue with fake request Knock service completely offline or slow down service

“Cloud outages” are a form of DoS.

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5. Data lossDamage of cloud datacenterDeletion or modification of data

Customers, cloud providers or attackers

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Azure Architecture OverviewThree Core Components

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Compute Storage Fabric

Provides a computation environment with Web role Worker role

Focuses on providing scalable storage Blobs, Tables, Queue,

Drives for large-scale needs

Makes up the physical underpinnings of the Azure platform as the network of interconnected nodes consisting of Servers, high-speed

connections, and switches

Part of the Fabric Compute & Storage

componentsFabric resources & Applications & Services running on those resources Managed by the Azure

Fabric Controller service

microsoft.com

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Competitors, Competitive Technologies & Customers

Gartner Magic Quadrant To understand the performance & direction of the cloud market

Microsoft Azure, Amazon Web Services & Google Cloud Platform

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How Gartner MQ worksHas four quadrants

Leaders – execute well & are well positioned for tomorrowVisionaries – understand the market or have a vision for changing,

but do not yet execute wellNiche Players – focus successfully on a small segment, or are

unfocused and do not out-innovate or outperform othersChallengers – execute well today or may dominate a large

segment, but do not demonstrate an understanding of market direction

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Infrastructure as a Service (IaaS)

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Platform as a Service (PaaS)

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Storage

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Identity as a Service (IDaaS)

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Microsoft Azure, Amazon Web Services & Google Cloud Platform & Their Technologies

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Compute Data Others

IaaS PaaS Blobs Relational NoSQL Identity Machine Learning

Microsoft Azure

Virtual Machine

Websites, Cloud

ServicesBlobs SQL Database DocumentDB,

Tables

Azure Active

DirectoryAzure ML

AmazonWeb Services

Elastic Compute

Cloud (EC2)

Elastic Beanstalk

Simple Storage

Service (S3)

Relational Database Service

(RDS)DynamoDB Amazon

ML

GoogleCloud Platform

Compute Engine App Engine Cloud

Storage Cloud SQL Cloud Datastore Prediction API

azure.microsoft.com

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Cloud Platforms for Enterprises

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Summary of the public cloud MQs

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Microsoft Azure’s Default Platform

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msdn.com


Amazon Web Service’s Default Platform

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msdn.com

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Google Cloud Platform’s Default Platform

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msdn.com


Customers

Microsoft Azure Rolls-Royce, Real Madrid C.F., NBC Universal, & GE Health Care

Amazon Web Services (AWS)Adobe Systems, Netflix, Blackboard, SAP & Snap Inc.

Google Cloud PlatformCoca-Cola, Bestbuy, Airbus Defense & Space, Evernote &

Motorola

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FY 2016 Earnings ReportFY 2016 Q2-Q4 Earnings Report

Amazon Web Services (AWS)

Microsoft Azure Google Cloud Platform

$ 2.56 Billion Q1 $ 5.9 Billion Q1 $ 1Billion Q1$ 3 Billion Q2 $ 6.3 Billion Q2 $2.17 Billion Q2$ 3.2 Billion Q3 $ 6.1 Billion Q3 $2.4 Billion Q3$ 3.53 Billion Q447% up from the year-ago quarter

$ 6.7 Billion Q4102% up (More than doubling year-over-year)

$4.1 Billion Q449% up from the year-ago quarter

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meekwire.com microsoft.com networkworld.com

Comparative SWOT Analysis for Azure & AWS42

Strengths•Fortune 5000 customer

base•Hybrid cloud Azure stacks•Strong integration w/ back

office IT applications so right choice for companies that use Microsoft

•Massive community systems and Software Development Vendors

Weaknesses•Late start as compared to

AWS•Azure cloud is still very new•Presence in streaming

media

Opportunities•Streaming media cloud

platform•Partner with more services

to integrate better with Microsoft Enterprise Systems

Threats•Competing providers with

a strong streaming media platform

•Players (such as Google) with much better Artificial Intelligence software development & AI engines

Microsoft A

zure

azure.microsoft.com

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Comparative SWOT Analysis for Azure & AWS43

Strengths•First market entry in 2006•Vast infrastructure of

dozens of services•Leader in the market•Capacity many times over

capacity competitors combined

•Streaming media cloud platform

•GovCloud

Weaknesses•Relatively inferior

penetration into Fortune 5000 customer base as compared to Azure

•Lack of hybrid cloud solution

• Comparatively small community of Systems and Application Development vendors

Opportunities•Market expected to grow•Suite of products and

services that complement AWS

•Internet of Things (IoT)

Threats•Strong competition from

established companies such as Google, Microsoft & Rackspace

•Niche players entering the market

•Price war will continue to put pressure on revenue

•Slowing growth rate in social media

Am

azon Web Services

(AW

S)

aws.amazon.com

Strategy between Azure & AWS 44

Strategy Infrastructure Platforms

azure.microsoft.com aws.amazon.com

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Cloud Vendor Proprietary Lock-In

Impossible to avoid proprietary lock-in entirely Every cloud platform has some extent of proprietary

lock-in Ask cloud vendors up front about their proprietary

lock-in policies Recommended for customers who do not want to

lock in in one vendor Look for a partner vendor which offers the ability to

move application & data from one data center to another without re-writing them entirely again

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References[1] “Azure and Its Competitors: The Big Picture,” Channel 9, 19-Jan-2016. [Online]. Available:

https://channel9.msdn.com/Events/FutureDecoded/Future-Decoded-2015-UK/7. [Accessed: 23-Mar-2017].

[2] “Azure CTO Mark Russinovich's top ten public cloud security risks,” ComputerWeekly, 10-Oct-2014. [Online]. Available: http://www.computerweekly.com/news/2240232396/How-to-mitigate-top-ten-public-cloud-security-risks-Azure-CTO-Mark-Russinovich. [Accessed: 23-Mar-2017].

[3] B. Butler, “What Google's earnings tell us about its cloud business,” Network World, 02-Feb-2016. [Online]. Available: http://www.networkworld.com/article/3029164/cloud-computing/what-google-s-earnings-tell-us-about-its-cloud-business.html. [Accessed: 23-Mar-2017].

[4] “Case Studies & Customer Success - Amazon Web Services (AWS),” Amazon Web Services, Inc., 2017. [Online]. Available: https://aws.amazon.com/solutions/case-studies/. [Accessed: 23-Mar-2017].

[5] “Companies Using Google Cloud Services | Google Cloud Platform,” Google Cloud Platform, 2017. [Online]. Available: https://cloud.google.com/customers/. [Accessed: 23-Mar-2017].

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References (Cont.)[6] “Customer and Partner Success Stories for Microsoft Azure,” Customer and Partner Success Stories for Microsoft Azure,

2017. [Online]. Available: https://azure.microsoft.com/en-us/case-studies/. [Accessed: 23-Mar-2017].

[7] “Directory of Azure Cloud Services | Microsoft Azure,” Directory of Azure Cloud Services | Microsoft Azure, 2017. [Online]. Available: https://azure.microsoft.com/en-us/services/?&sort=popular. [Accessed: 23-Mar-2017].

[8] “FAQ with Mark Russinovich - Does Windows Azure run Windows?,” Microsoft Azure: Cloud Computing Platform & Services, 2017. [Online]. Available: https://azure.microsoft.com/en-gb/resources/videos/mark-russinovich-windows-on-azure/. [Accessed: 23-Mar-2017].

[9] “Magic Quadrant Research Methodology | Gartner Inc.,” Magic Quadrant Research Methodology | Gartner Inc., 2017. [Online]. Available: http://www.gartner.com/technology/research/methodologies/research_mq.jsp. [Accessed: 23-Mar-2017].

[10] “Microsoft 2016 Annual Report,” Microsoft 2016 Annual Report, 2016. [Online]. Available: https://www.microsoft.com/investor/reports/ar16/index.html. [Accessed: 23-Mar-2017].

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References (Cont.)[11] “Microsoft Investor Relations,” FY16 Q4 - Press Releases - Investor Relations - Microsoft, 2017. [Online]. Available:

https://www.microsoft.com/en-us/Investor/earnings/FY-2016-Q4/press-release-webcast. [Accessed: 23-Mar-2017].

[12] S. R. G. R. NV, “Amazon Dominates Public IaaS and Ahead in PaaS; IBM Leads in Private Cloud | Synergy Research Group,” Amazon Dominates Public IaaS and Ahead in PaaS; IBM Leads in Private Cloud | Synergy Research Group, 30-Nov-2016. [Online]. Available: https://www.srgresearch.com/articles/amazon-dominates-public-iaas-paas-ibm-leads-managed-private-cloud. [Accessed: 23-Mar-2017].

[13] S. R. G. R. NV, “Amazon Leads; Microsoft, IBM & Google Chase; Others Trail | Synergy Research Group,” Amazon Leads; Microsoft, IBM & Google Chase; Others Trail | Synergy Research Group, 01-Aug-2016. [Online]. Available: https://www.srgresearch.com/articles/amazon-leads-microsoft-ibm-google-chase-others-trail. [Accessed: 23-Mar- 2017].

[14] S. R. G. R. NV, “2016 Review Shows $148 billion Cloud Market Growing at 25% Annually | Synergy Research Group,” 2016 Review Shows $148 billion Cloud Market Growing at 25% Annually | Synergy Research Group, 03-Jan-2017. [Online]. Available: https://www.srgresearch.com/articles/2016-review-shows-148-billion-cloud-market-growing-25-annually. [Accessed: 23-Mar-2017].

[15] “Pay-As-You-Go,” Microsoft Azure, 2017. [Online]. Available: https://azure.microsoft.com/en-us/offers/ms-azr-0003p/. [Accessed: 23-Mar-2017].

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References (Cont.)[16] “Satya Nadella,” News Center, 2017. [Online]. Available: https://news.microsoft.com/exec/satya-nadella/.

[Accessed: 23-Mar-2017].

[17] “Seven IDaaS Vendors to Watch in 2017,” Top Identity & Access Management Software, Vendors, Products, Solutions, & Services, 07-Dec-2016. [Online]. Available: https://solutionsreview.com/identity-management/seven-idaas-vendors-to-watch-in-2017/. [Accessed: 23-Mar-2017].

[18] T. Soper, “Amazon Web Services posts $3.5B in sales, up 47% from last year, reaches $14B annual run rate,” GeekWire, 02-Feb-2017. [Online]. Available: http://www.geekwire.com/2017/amazon-web-services-posts-3-5b-revenue-47-last-year/. [Accessed: 23-Mar-2017].

[19] “Upcoming Name Change for Windows Azure,” Blog | Microsoft Azure, 24-Mar-2014. [Online]. Available: https://azure.microsoft.com/en-us/blog/upcoming-name-change-for-windows-azure/. [Accessed: 23-Mar-2017].

[20] “What is cloud computing? A beginner's guide | Microsoft Azure,” A beginner's guide | Microsoft Azure, 2017. [Online]. Available: https://azure.microsoft.com/en-us/overview/what-is-cloud-computing/. [Accessed: 23-Mar-2017].

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References (Cont.)[21] “What is identity as a Service (IDaaS)? - Definition from WhatIs.com,” SearchMobileComputing, Mar-2012.

[Online]. Available: http://searchmobilecomputing.techtarget.com/definition/identity-as-a-Service-IDaaS. [Accessed: 23-Mar-2017].

[22] M., “Windows Azure Business Models, Discounts and Sales Incentives for Partners,” Michał Morciniec, 02-Oct-2013. [Online]. Available: https://blogs.msdn.microsoft.com/micham/2013/10/02/windows-azure-business-models-discounts-and-sales-incentives-for-partners/. [Accessed: 23-Mar-2017].

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Documents

Microsoft Azure - Final Project Report-Aungar (to submit)lin/CPET575_MangOfTech/2017-Spring/3...Amazon Web Services (AWS) Adobe Systems, Netflix, Blackboard, SAP & Snap Inc. Google