What is the Cloud?
On-Premises Information Systems Architecture
- WORKLOAD
- SERVICES
- VIRTUAL MACHINES
- VIRTUALIZATION
- PHYSICAL INFRASTRUCTURE
- PHYSICAL FACILITY
Cloud Architecture
- WORKLOAD
- SERVICES
- VIRTUAL MACHINE
- MANAGEMENT PLANE(ex Azure Portal)
VIRTUALIZATION(managed by provider)PHYSICAL INFRASTRUCTURE(managed by provider)PHYSICAL FACILITY(managed by provider)
Types of Cloud Services
- SOFTWARE AS A SERVICE
- PLATFORM AS A SERVICE
- INFRASTRUCTURE AS A SERVICE
Accessing Cloud Services
- VPN GATEWAY(over internet)
- EXPRESS ROUTE(WAN)
What is Azure?
Azure as a Cloud Provider
- Management plane allows you to manage every services with management tools
- Azure portal, Azure Powershell, REST API are examples of management tools
Azure Clouds
- Azure Public Cloud
- Microsoft Cloud for US Government
- Microsoft Cloud Germany
- Azure and Office 365 operated by 21Vianet in China
Azure Regions

Azure Billing Models
- Capacity based billing
- Consumption based billing
- Fee-based billing
Why Choose the Cloud?
Cloud Economics
- Storage
- Compute
- Networking
CapEx vs OpEx
- On-premises capacity expansion = capital expense
- Purchase equipment and licensing up-front
- Depreciate and replace equipment
- Renew licenses
- Cloud-base capacity expansion = operation expense
- Billed monthly for what is used
- No equipment purchase
- May or may not require license purchase
- Capacity reduction
- On-premises — possibly sell excess equipment
- Cloud — reduce monthly costs
Consumption-Base Spending
- Capacity-based spending
- On-premises resources
- Some Azure resources – virtual machines
- Consumption-based spending
- Pay only for what is used
- Function apps, logic apps, storage accounts
Functional Advantages
- Provision environments in minutes rather than days, weeks, or months
- No capital equipment purchases
- Streamlined provisioning process
- Built-in access and allocation management
- Reduced administrative overhead
Azure Management Tools
Azure Management Plane
- Regardless of the way you manage Azure, you are using REST API as a pipeline
Azure Portal
- Web-based
- For every types of users
Azure Command Line Tools
- Azure PowerShell cmdlets
- Azure CLI
Azure REST API
- Communicates through HTTPS
- Allows to build custom applications
Azure Cloud Shell
- Web-based console interface
- Bash shell
- PowerShell
- Cross-platform
- https://shell.azure.com
Azure Subscription Management
Azure Subscriptions

Subscription Types
- Pay as you go — Most common
- Enterprise — Most common
- 3rd party
- Free
- Credit
Subscription Access

Management Groups

Enterprise License Agreement
- Azure stand-alone enrollment or as part of on-premises enrollment
- Azure EA port
- Departments, accounts, subscriptions
- Roles — enterprise administrator, department administrator
- Cost reporting is different
- Spending Quota — department level
- Enterprise Dev/Test Subscriptions
- Lower cost
- No SLA
- Licensed for dev/test only
Azure Service Lifecycle
- General availability
- Public preview
- Private preview
Azure Cost Planning
Azure Service Purchasing
- Reserved Instances
- Low priority compute
- Performance and feature tiers
- Free accounts
- Free services
Azure Pricing Models
- Capacity-based pricing
- Virtual machines
- Virtual network gateways
- Charges typically accrue per minute
- Consumption-based pricing
- Function and logic apps
- Storage accounts
- Combination pricing
- Cosmos DB
- Service bus
- Almost consumption-based
- Container instances — charges accrue per second
Key Azure Cost Factors
- Size/Capacity
- Pricing tier
- Infrastructure versus platform functionality
- Region
- Regional zone
- Data transfer costs
Azure Cost Management Best Practices
Cost Analysis
- Many builtin tools for cost analysis
Spending Limits & Quotas
- Spending Limits
- Apply to credit-based subscription — MSDN, Trial
- Subscription is disabled
- Spending Quotas
- At the enterprise department level
- Subscriptions are not disabled
- Sends notifications at 50%, 75%, 90% and 100% of quota
- Budgets
- At the subscription level
- Subscription is not disabled
- Custom set alert/notification levels
- Using Tags
- Using Policies
- Azure Reservations & Spot Pricing
- 1 year reserved with AHB = ~40% savings
- 3 years reserved with AHB = ~62% savings
- Spot with AHB = ~80% savings
- Optimizing Location
- Regional cost differences
- Pricing zones
Using Azure Costs Tools
- Azure Cost Advisor
- Azure Pricing Calculator
- Total Cost of Ownership (TCO) Calculator
- Azure Cost Management
Azure Cost Management Tools
Azure Cost Advisor
- Reduce costs by eliminating unprovisioned ExpressRoute circuits
- Buy reserved virtual machine instances to save money over pay-as-you-go costs
- Delete unassociated public IP addresses to save money
- Use Standard Snapshots for Managed Disks



Azure Total Cost of Ownership (TCO) Calculator





Cost Management & Billing


Azure Support
Azure Support Plans
- Basic
- Billing and subscription support
- Azure advisors
- Developer
- Business hours e-mail support
- <8 hour response time
- Standard
- <8 for minimal impact incidents
- <1 hour response for critical business impact incidents
- 24/7 access via e-mail and phone
- Professional direct
- <4 hour for minimal impact incidents
- Architecture guidance, operational support, training
- Premier
- Dedicated architecture guidance and review
- On-demand training
- <15 minute response with Azure Rapid Response or Azure Event Management
Support Tickets

Azure Service Level Agreements
- Many services at 99% or 99.5 SLA for availability and performance
- Virtual Machine availability
- 99.5% – single, premium VM
- 99.95% – 2 or more VMs in availability set
- 99.99% – 2 or more VMs in availability zones
- Web apps – 99.95% available
- Azure SQL database availability — up to 99.995%
- Azure CosmosDB — up to 99.99% throughput, 99,999% availability
Composite SLAs
- Solutions may implement multiple services with independent SLAs
- Services may be dependent or independent
- Dependent – Use the sum of downtime. Example
- Solution includes a web app (99.5% available) which is dependent on a service running in a premium virtual machine (99.9% available)
- Downtime minutes per month ( assuming 43,200 minutes/month):
- Web app – 21.6
- Virtual machine – 43.2
- Total – 64.8
- Composite availability – 99.85%
- Dependent – Use the sum of downtime. Example
Shared Responsibility Model



Azure Resource Manager
Azure Resource
- Everything in Azure
- Sometimes referred to as services
- Fundamental object in the “management plane”
- Charges accrue at the resource level
- Billing is at the subscription level
Azure Management Model

Azure Resource Groups
- Primary Organizational Object
- Administrative roles
- Governance by policy
- Life cycle management
- Spending allocation
Azure Marketplace
- All Azure resources
- Provided by Microsoft
- Provided by partners
- Organized by service type
- Searchable
Azure Regions & Availability Zones
Azure Regions


Availability Zones

- Storage Geo-Redundancy
- Locally Redundant Storage
- All regions
- All services
- All tiers
- 99.9% availability
- 11 9s durability
- Zone Redundant Storage
- Limited regions
- General prupose V2, FileStorage, BlockBlob
- All tiers
- 99.9% availability
- 12 9s durability
- Geo Redundant Storage
- Limited regions
- General purpose V2, GPv1, Blob
- All tiers
- 99.99% read availability
- 16 9s durability
- Preview GZRS,RA-GZR
- Locally Redundant Storage
- Azure SQL Database Geo-Redundancy
- Geo-Replication
- Up to 4 secondaries
- Different regions
- Read-only
- Auto-failover
- Single databases
- Multiple databases
- Entire server(managed instance)
- Geo-Replication
- CosmosDB
- 99.99% single region
- 99.999% multi-region(read and/or write)