Traditional IT
Before expanding on the idea of cloud-based resources, let's take a step back and look at traditional IT using local resources.
Knowledge Check
Which of the following statements about transitioning from local resources to cloud-based resources are true? (Choose three)
Moving to Co-Location
So we understand local resources in our own server room/datacenter. What if local resources aren't enough to meet our needs? That's where colocation comes in.
Knowledge Check
Co-location facilities allow organizations to lease space for their server racks, providing resources like electricity and physical security.
Explore Microsoft's Datacenters
Now let's take a look at Microsoft's global datacenters!
Knowledge Check
What was one of the advantages of Microsoft's Project Natick?
Touring Microsoft Datacenters
Getting inside a Microsoft datacenter isn't easy. In fact, for most of us, it's not even possible. However, we can all gain visibility to Microsoft datacenters virtually!
Knowledge Check
What is one reason Microsoft data centers are described as 'famously boring'?
What is Azure?
Azure is the umbrella that covers most of Microsoft's cloud services. Let's see some of its constituent parts and infrastructure.
Knowledge Check
What is Entra ID in the context of Microsoft Azure?
CapEx and OpEx
Capital expenditures (CapEx) relates to actual expenses spent to support our own IT resources (servers, routers, etc.) OpEx relates to expenses to operate IT resources. Although I don't mention these terms in the video below, you'll see an example of how this plays out when we buy our own servers versus paying only for what we use in Azure.
Knowledge Check
Which of the following are benefits of using cloud services like Azure for handling variable demand in business operations? (Choose three)
Validation
Let's summarize what we've learned about local and cloud-based datacenters!
Knowledge Check
What is one of the main reasons some IT administrators are hesitant to move to cloud-based resources?
Knowledge Check
What is a primary advantage of using a co-location facility?
Knowledge Check
What is a key advantage of using Azure for handling variable demand in business operations?
View Transcript
Traditional IT
0:00So I just got finished with a work trip here.
0:03I'm still in Orlando, Florida, but I went to a conference here,
0:06and a lot of the emphasis was on Microsoft products
0:09and, of course, Azure,
0:11as well as other underlying products from Azure,
0:15such as Intune, EntryD, what else?
0:18Purview, lots of those kinds of things.
0:20Anyway, it was astounding to me that a lot of times
0:25the presenter would ask for a raise of hands
0:27asking how many people were in the cloud.
0:30And there were still a lot of people
0:31that did not have presence in the cloud,
0:34at least not in any significant way.
0:36And a lot of that, I think, comes up from mistrust.
0:39In fact, when I was at lunch,
0:41I talked to an administrator who's actually from Germany.
0:43He's probably about my age,
0:44so he's pretty old and experienced in IT.
0:47And he said, oh, no, you can't trust the cloud.
0:49It's on the internet.
0:50Well, wait a minute.
0:53Is your own data center also on the internet?
0:55Yes.
0:56Well, you're also on the internet,
0:58so how, you know, the same problem might exist
1:00if you're just concerned about being on the internet.
1:03And I think that's one of the paradigm shifts
1:05that we as administrators have to face.
1:07Now, I do want to point out,
1:08what I'm going to show you here in a lot of this skill
1:11is not directly coming from the exam objectives
1:14of the AB 900 course.
1:16The reason why I'm showing you this
1:18is because I think some of us need
1:20kind of a warmup into the cloud.
1:22So we're already all invested in the cloud
1:25to some degree, right?
1:26I mean, you've got maybe a Dropbox account.
1:28If you've got an iPhone like I do,
1:31then you're already on, you know, Apple's cloud, iCloud.
1:35Any photo that you take gets uploaded
1:37usually automatically to the cloud.
1:39So we're all on a consumer level cloud of some type.
1:41But when it comes to our servers and data centers
1:44and all that stuff,
1:45that's when people sometimes get nervous.
1:47So we're going to take a look
1:48at kind of the paradigm shift here
1:50and hopefully get us warmed up to the cloud.
1:53So first of all, what do we got going on here?
1:56On-premises, okay, what do we have on-premises?
1:58Well, all the things you would normally expect to see, right?
2:01So we've got servers on-premises.
2:02You know, maybe you have a big rack like this,
2:05maybe multiple racks,
2:06depending on the size of your organization.
2:07In some organizations, the server, quote unquote,
2:10I'm trying to fit my air quotes
2:12inside of this tiny little circle right here.
2:13Anyway, sometimes the server in a small organization
2:17might be the computer
2:18that's underneath the receptionist's desk.
2:21In other places, you might have a server closet.
2:23I've been in smaller organizations
2:25where we did have a server closet.
2:27Wasn't designed as a server room in any way,
2:31didn't have adequate ventilation and cooling
2:34and stuff like that.
2:34And yes, we burned up a server once,
2:37at least the hard drives on that server.
2:39It was all we could do though, because it's a long story,
2:42but we were in a temporary space
2:43while you're waiting to move
2:44into a more modern office building.
2:46And that was the only place we could do it.
2:47Anyway, you may also have your own data center
2:50if you're in a larger organization.
2:51You might have a space that's rigged specifically
2:55for data center purposes.
2:56It's got the right cooling.
2:57It's got the right power.
2:59It's got maybe some security measures also in place.
3:02So you might already have all of that.
3:04You may have that for your servers.
3:05Then you also have, oh my gosh, I just noticed this.
3:08This will be fun.
3:08Look, I think I can take my head
3:10and put it on top of this guy right down here.
3:12Okay, so let's have fun with that one.
3:14All right, so anyway, what else have we got going on?
3:16So you've got your desktops.
3:18Now, to a large degree, and I'm gonna move this back
3:20before it drives us all nuts.
3:23You're saying your floating head's
3:24already driving me nuts, James.
3:25Anyway, you may already have your desktops
3:27all or partly in the cloud.
3:29Now, you can't really honestly
3:30put all of your desktops in the cloud
3:32because it's kind of an in the name, desktops.
3:35It's something that somebody can work on at their desk.
3:38But there are desktop solutions actually in the cloud.
3:41So for example, imagine you have a small nonprofit
3:45and you've got a couple dozen users.
3:48They're all working on computers that were donated
3:50and they have, I don't know, two gigs of RAM
3:52and an older processor, smaller hard drives,
3:56all that kind of stuff.
3:57And maybe they don't meet the standard
3:59for being able to install something like Windows 11
4:02or maybe even Windows 10.
4:04Maybe they're even 32-bit machines, 32-bit processors.
4:08Maybe they have CRT monitors.
4:10Yeah, I'm not sure how much of a gift this was
4:13as a donation from somebody.
4:14But anyway, this does happen.
4:15Well, how are they gonna get access to modern applications,
4:19modern operating systems like Windows?
4:21Well, they're not on that basis.
4:24You can't install Windows 11 on something like that,
4:26but you can put your desktops in the cloud.
4:29So you can have, hopefully I can write this out
4:32on this drawing pad, Windows 365.
4:36I don't have my normal pen and everything here,
4:38so I'm kind of having a hard time writing.
4:39But anyway, Windows 365 allows you to connect
4:44to a modern Windows 11 machine,
4:47regardless almost of what desktop operating system
4:50you're running.
4:50You can connect from a Mac, from Linux,
4:52from anything really that has a browser
4:54and or that uses RDP.
4:57So as long as you use the remote desktop protocol
4:59or really more accurately, the Microsoft app,
5:02it used to be called the remote desktop app,
5:04I think, something like that.
5:05Now they call it the Microsoft app.
5:07Yet another thing that Microsoft has decided to rename
5:10and confuse everybody.
5:11Anyway, yeah, you could now actually connect
5:15to a modern desktop from a really old, crusty computer.
5:18Or the other part of that is,
5:20maybe you have users working at home.
5:22Well, you don't wanna manage everybody's personal computer
5:25and you really shouldn't.
5:26However, with Windows 365,
5:29you can just have everybody connect from their home PC,
5:33whatever their operating system is,
5:35to their Windows 365 desktop.
5:38It works out really great.
5:39Okay, applications, okay?
5:41There's another thing that is becoming less and less
5:44installed on a local basis.
5:46A lot of these applications now are in the cloud.
5:50So Salesforce, I think you can install locally still,
5:54I think, I haven't really kept up with it.
5:56But a lot of that's done in the cloud now.
5:58It's a web app, okay?
6:00So all you have to do is to open up a browser,
6:02go to a specific website,
6:04and the whole software runs right from there.
6:07Similarly, I used to have a couple of businesses.
6:10I used to run QuickBooks.
6:11I used to, in the old days,
6:12install QuickBooks on my desktop computer.
6:15When an update came out, I had to update it.
6:17Now, with QuickBooks, you just open up their website
6:21and it's always up to date because they update it.
6:23And when you connect to it over a browser,
6:25well, there you go, you've got it.
6:26Also, our network equipment, okay?
6:29So we have to manage that.
6:30Maybe you have someone who's a CCNA
6:32or in a large organization, you might have CCIE,
6:35which is the highest level of network you can get
6:37in network equipment, or for Cisco, excuse me.
6:41So that's something that you're gonna be managing
6:43from on-premises as well.
6:44Now, I do wanna point out, when you move to the cloud,
6:48does that mean you don't have any of this stuff?
6:50No.
6:51Wow, that was ugly.
6:52Let's try that again.
6:53I was gonna skip it.
6:54Anyway, you'll still have some or all of these
6:57to varying degrees,
6:59but you might be able to transition to the cloud.
7:01So a lot of your workload moves to the cloud
7:05and you don't have to manage it locally.
7:06The other part of this,
7:07especially as you get into a little bit
7:08of larger organization is,
7:09well, you might have a server room,
7:11a dedicated server room,
7:13or more likely in a bigger enterprise,
7:16you'll have a data center of your own.
7:17Well, all of these things, when we run them locally,
7:21they get to be a maintenance burden and expensive.
7:25So some people look at Azure
7:27and all of its associated products
7:29that are underneath that Azure umbrella,
7:31and it just looks pretty expensive
7:32when they start to add things up.
7:34Well, you gotta compare that
7:35to what you're already paying for.
7:36You're already paying for powering all these servers,
7:39this whole data center, insurance, maintenance, upkeep.
7:43You also have to pay for new equipment
7:45when something breaks
7:47or when something needs to be updated.
7:50A lot of servers will go about five to seven years
7:54before their end of life life cycle is up.
7:57And the same is true of desktops.
7:58Servers might be able to go a little bit longer,
8:00but desktops, at least in terms of the hardware,
8:01usually about five to seven years
8:03before you cycle them out.
8:04But on-premises, as administrators,
8:07we're really proud of our data center.
8:09We're really proud of our rack of servers over here,
8:11and we can put our hands on it.
8:13We know what every little blinking light here means,
8:15and it gives us a little bit of, I don't know,
8:17kind of a warm, fuzzy feeling that we can lay eyes on it
8:21and know where everything is and stuff like that.
8:23The cloud is much more nebulous that way.
8:26You will know, in general terms, where all your stuff is,
8:30okay, where your tenant is,
8:32but you're not likely to know exactly which server it's on
8:35or even which data center,
8:36because Microsoft's data centers are broken up
8:40into various regions,
8:42and then they're broken up further into availability zones
8:46and other stuff, which we can talk about that later.
8:48But I'll give you an example.
8:49Here in Phoenix, okay,
8:51or actually when I'm at home in Phoenix,
8:52because I'm not there right now,
8:54but in Phoenix, okay, we have,
8:56I think it's West 2 or West,
8:59I think it's West 3 in Phoenix.
9:01U.S. West 3, I'll just put it that way.
9:04Anyway, what does that actually mean
9:05in terms of data centers?
9:06Well, there's more than one data center.
9:07There's kind of Microsoft's main one.
9:09It's about, I don't know, 20 or 30 miles from my house,
9:12but they also have access to and connection to
9:16a couple of other data centers.
9:18So when I drop my tenant into U.S. West 3,
9:22I don't know if it's gonna be in their main data center
9:25or in one of the other parts of the data,
9:27parts of U.S. West 3,
9:29because there's availability zones there
9:32where, you know, if my content is here,
9:34you know, that's my,
9:35let's just say that's a server or something.
9:37If that fails, well, that's kind of okay
9:39because there's a read-only copy replicated
9:42to these other areas of the availability zones.
9:45So if this one goes down, we can use this one instead.
9:48By the way, that's not automatic.
9:50You have to configure that.
9:51Wish it was automatic, but it's not.
9:52Anyway, that's kind of the idea there.
9:54Thus, in the next video,
9:56we'll go ahead and kind of expand upon that idea
9:59and also look at moving from local resources
10:03into the cloud, either partially or possibly even entirely.
Moving to Co-Location
0:00All right, so let's take a look at a progression here.
0:03So maybe you have a smaller company
0:04that started to grow and grow and grow,
0:06and now you're in a larger office building.
0:09Like, let's say that this is your corner office right here.
0:12Okay, somebody's corner office.
0:13And when they actually want to work with data,
0:16maybe they're working on their laptop computer here,
0:19the little keyboard down here.
0:20They're working on their laptop
0:22and they're saving files, right?
0:24They're saving files.
0:24Then generally the users tend to think of those files
0:27being stored on their laptop.
0:28And they might be,
0:30but very often they're actually stored
0:32in a network location.
0:34So it might be a mapped drive
0:35that you've created for that user,
0:37or you're redirecting their documents
0:38if you're doing everything.
0:39And we're thinking about all on-prem here,
0:41by the way, on-premises.
0:43So anyway, that actually gets stored somewhere,
0:45doesn't it?
0:45Well, in many organizations,
0:47if you have, again, you know,
0:47like a big office building like that,
0:49it looks like it is.
0:50If they have their own data center,
0:52very often that's going to be on the ground floor.
0:54Okay, there's a lot of reasons for that.
0:56Part of it is because it's easier to route utilities
1:00for the high energy demands that a data center needs.
1:03Plumbing, if there's water cooling solutions,
1:07that's easier to access.
1:08It's easier to wheel data in or to ship data in and out.
1:13There's usually a loading dock somewhere down there as well.
1:15So a lot of that server equipment is very heavy.
1:18And a lot of the uninterruptible power supplies,
1:21or UPSs, are the size of a Volkswagen.
1:24And they're just very big and heavy.
1:26And so that's another reason why,
1:28because usually a ground floor
1:29can support more weight like that.
1:31Okay, so anyway, because again,
1:33a lot of them weigh more than a car.
1:34So anyway, yeah, now we're storing stuff.
1:36It's all down here in our data center on-premises.
1:40Now, as time goes by,
1:41maybe we've expanded out into branch offices.
1:44So maybe we have Phoenix here.
1:45I'm actually getting the hang of
1:47working with this drawing pad
1:48I've been working with lately.
1:49And then maybe down here,
1:50we've expanded to a different office.
1:52Okay, so maybe we have a branch office here in Albuquerque.
1:55We say branch office, but it's still a sizable office.
1:57We have another one over here, let's say, in Denver.
2:00And if you're not from the US,
2:01Phoenix is in Arizona.
2:03Albuquerque is very difficult to spell,
2:04which makes it easy to put the airport code up there,
2:07which is ABQ.
2:08That's in New Mexico, next to Phoenix, next to Arizona.
2:11And then Denver is over here in Colorado.
2:14Okay, so anyway, now what do we have going on?
2:16Well, now we have to have some kind of a link, right?
2:18So maybe this is our link between these offices.
2:21I'll just draw this one in differently here.
2:22So we've got some kind of network link there.
2:24And, you know, in the old days,
2:26we used to have dedicated links.
2:28I'm not saying those don't exist anymore,
2:29but they're very expensive.
2:30So very often nowadays,
2:32these organizations will just use internet, okay?
2:35And the initial feeling there,
2:38the knee-jerk reaction is,
2:39oh, that's not secure.
2:41Well, it can be made secure,
2:42because you can do something like a site-to-site VPN
2:45or other kinds of solutions
2:47that will encrypt and protect that network traffic.
2:51So anyway, that's very often how that is gonna be.
2:54And very often, data will be synchronized from Phoenix
2:59to one or both of these other branch offices.
3:02And one reason for that
3:03is because we also want some redundancy.
3:05What if here in Phoenix,
3:07it's 115 degrees outside,
3:09and the air conditioning totally blows out in this building,
3:12and we have, you know,
3:12these flames coming out of our servers
3:15and everything down here.
3:16So now, that's messed up,
3:18and we can't rely on that data center right now.
3:20And of course, I'm just making up a situation,
3:22but there's all kinds of things that can happen.
3:23We don't really have many natural disasters,
3:25but I guess something could happen.
3:26So what we can do is we can kind of flip the switch
3:29and start to access our data in Albuquerque.
3:31Now, of course, there's a lot of underlying
3:34pre-planned measures to make that happen,
3:36and, you know, things like clusters and failover
3:39and all that kind of stuff.
3:40But anyway, regardless, we have that capability now.
3:43We have a layer of safety in being able to depend upon
3:47these replicated locations.
3:49Now, it's not all just replication.
3:50It could be a lot of other things as well,
3:52but the point is we have now data there,
3:55and we also have data over here in Denver as well.
3:58So the organization continues to grow.
4:01So we can't expand.
4:02Let me kind of back some of this out.
4:04We can no longer expand our data center.
4:06So down here in Phoenix,
4:08we filled up our data center on that ground floor.
4:11That's one reason why maybe we had to open up
4:13a branch office, not just for the data center,
4:15but for a business expansion.
4:16Same with Denver.
4:17Now, these offices also are continuing to grow
4:20and need to support our users and our customers
4:23and whatever else we have in our business.
4:24Well, if we cannot expand those anymore,
4:26then what do we do?
4:27Well, we can move into co-location facilities, okay?
4:31What's a co-location facility?
4:33You might be doing that for all of our offices here.
4:35A colo is another data center.
4:37That's all it really is.
4:38It's just, and in Phoenix, where I live,
4:41we've had a proliferation of them.
4:43There must have been, I can count four or five,
4:46five different data centers that have been built
4:48in the last two years, and they're gigantic.
4:51But what's the advantage of using a data center
4:54from a third party as opposed to having your own?
4:56First of all, who wants to pay
4:58to build your own data center,
5:01a freestanding data center in a separate building
5:03like data centers usually are?
5:05Well, not me.
5:07Those are millions of dollars in expense
5:08and exorbitantly expensive for most organizations.
5:13So what do we do?
5:14We lease some space there, okay?
5:16So we're gonna lease a little bit of space
5:18in one or all of these data centers.
5:20And then we'll take our server racks,
5:22like we saw in our last video here.
5:24And to give you a little bit of sense of scale,
5:26this guy's probably about the right height
5:27for a data center.
5:28I think these are usually 73 inches high,
5:30somewhere around there, 42 inches from front to back,
5:33and the width is usually 24 inches.
5:35If I'm off by an inch or two,
5:36I think that's generally right though.
5:37So that gives you an idea of the size of these server racks.
5:42So now in these data centers,
5:43very often what you could do is you can just wheel in
5:46or ship to or wheel in your own rack,
5:49like I just showed you on the previous slide there.
5:51You can take that rack
5:52and drop it into this data center somewhere.
5:54Drop it into, it sounds like you airdrop it.
5:56You don't wanna do that,
5:58but usually there'll be a loading dock,
5:59you can put it in there.
6:00And IT staff from your company can go into that data center
6:05and there's gonna be badged access and security
6:07and all kinds of things, of course,
6:09because you need to protect your clients
6:11if you own that data center, right?
6:12So this is now called co-location
6:14or sometimes we just call it colo.
6:16So we have a rack in that data center that we're leasing,
6:20we're leasing that space
6:22and we're leasing the utilities that supply it indirectly,
6:25you know, the electricity, the air conditioning,
6:28the physical security that's involved there and everything.
6:31So we're taking advantage
6:32of that whole co-location facilities resources
6:36and we're just renting out one,
6:38enough space to put our rack in, okay?
6:40Usually your own staff will be able to go in and out of there
6:43as they please, and they can only touch
6:46or manage their own rack of servers.
6:49They're carefully monitored
6:51and no one should be able to touch anything else there, okay?
6:54And then here's a representation of a data center.
6:56You can see the racks are in here and everything.
6:58They're, you know, really nice,
6:59pretty lighting and everything like that.
7:01That's the kind of thing you might see in a data center.
7:03Under here, underneath this are usually raceways
7:05that you can route cables
7:07and potentially other utilities and stuff like that.
7:09Some of them have them up in the ceiling instead,
7:10but anyway, that gives you an idea
7:12for what those might look like
7:14when they're actually installed and in place.
7:16Here's another one here.
7:17This looks like a lot of hard drives in this one,
7:20if I'm looking at that right.
7:21And that again is something else you'll have there
7:23is there a lot of storage in these racks sometime,
7:26terabytes and terabytes of storage.
7:28And then this is my favorite data center here.
7:31I don't actually know where this is.
7:32It is an actual photograph.
7:34It's not an AI thing or something like that,
7:36but you see again here,
7:37there's a, it looks like network equipment.
7:39I think that's network equipment up there.
7:41It's hard to tell with the reflection on the glass.
7:42Servers back here,
7:43it looks like there's a lot of storage down here
7:45at the bottom of this one as well.
7:46Anyway, that's the kind of thing you might have
7:48in one of these data centers.
7:49So what did we do here?
7:50Well, we started in one location, right?
7:53We started right there, right here.
7:55Let me get a better color that's more visible there.
7:57Anyway, we started right there and our company grew
7:59and we moved into a data center
8:01and we created a data center and we had branch offices.
8:04They had data centers
8:05and then everything kind of got to be too big
8:08for all of that.
8:09And so then we had to start using co-location services
8:12and it's not all because of growth.
8:13Sometimes it's just a good idea
8:15for things like redundancy and other reasons.
8:17But anyway, what have we actually done here?
8:19By the time we get here especially,
8:22we've kind of built our own cloud, right?
8:24So you have already been in the cloud
8:27if you've been in a situation like this.
8:29You don't control this co-location center, okay?
8:32You're just leasing space down there.
8:34That's what happens when you're in the cloud.
8:37You're leasing, if you will,
8:39resources in our case, Microsoft's cloud.
8:42And anyway, I set that all up
8:43just as kind of a overall guidance on moving into the cloud
8:48and kind of hopefully opening up a little bit more
8:50of a comfortable feeling about doing that
8:51because in certain ways,
8:54many of us have already been doing the cloud,
8:56maybe without realizing it.
Explore Microsoft's Datacenters
0:00All right, now I'm going to refer you to this website.
0:02I've also linked it down below,
0:04so you can kind of explore around on this on your own.
0:07This is actually really cool.
0:08This is something that Microsoft makes available to us,
0:11so you can kind of get a comprehensive look
0:13at what's going on with their cloud, right?
0:16So this will show things such as actual data centers,
0:21power generation, they're trying to get to a more,
0:25what do you call it, carbon neutral energy footprint.
0:28Right now, they're at about 70%.
0:30And you can see, actually, if you look at the legend,
0:32there's a legend here,
0:33this shows sustainability projects, okay?
0:36So with wind, solar, and mixed, okay?
0:39So in my area, if I zoom in a little bit,
0:42I think you can lose these little zoomy things.
0:45This is my area right down here where I live in Phoenix.
0:48It's West US 3.
0:50That's about 20, probably 20 or 30 miles from my own house.
0:54If you click on it, it actually shows it to you over here.
0:56That's the skyline for where I live.
0:58Looks like it was taken from Papago Peak, maybe,
1:01or maybe Camelback Mountain.
1:02Anyway, doesn't matter.
1:04Gives you a little bit of information
1:05about that particular location.
1:08Now, one thing I want to point out
1:09is that when you first set up your tenant,
1:12if it's not already set up,
1:13you have to tell Microsoft where you want it to be located.
1:17This is not something that is very easily moved.
1:20So yes, you'll have redundancies
1:22in other locations if you want,
1:24but your initial choice
1:26has to be a pretty solid decision here.
1:29I would not want to set it up in West US 3
1:32and then tomorrow decide to send it in Central US
1:35or East US or something like that.
1:37So these were set up in terms of geography,
1:40which you can kind of think of geography
1:41as the overall main continent here, okay?
1:45So United States is one of the geographies.
1:47There's also Europe, okay?
1:49That's a geography.
1:50What else have we got?
1:51Asia, I guess Asia's over here, okay?
1:52So Asia's a geography.
1:54Getting back to the US, which I'm the most familiar with,
1:57you'll see that they have, I was talking about energy,
1:59they have sun streams here.
2:01What is that?
2:02I don't know, solar, I guess, okay?
2:03And that kind of gives you a visual representation
2:05of that sort of thing.
2:07There's also wind farms like right here.
2:09Okay, so anyway,
2:09that's how they're supporting that sort of thing.
2:11Also notice that there is these interconnected
2:14undersea cables that go worldwide.
2:18This is huge.
2:19I just saw a YouTube video on
2:21not just Microsoft undersea cables,
2:23but from a lot of organizations.
2:25It's quite a fascinating thing to look at here.
2:28Someone was saying in the video that trillions of dollars
2:32transit these cables every, I think he said every hour.
2:36I guess that's in relation to transactions, banking,
2:38all that kind of stuff,
2:39and overall value of the websites that are connected.
2:42They also used to have, they changed this whole thing here,
2:45but they used to show satellites orbiting the earth here.
2:49Because I guess Microsoft also has satellite connections
2:54that they can use.
2:55Maybe they're trying to hide the fact
2:56that they have a mothership up there somewhere,
2:58then they took out those satellites.
3:00Anyway, this gives you an idea
3:02of how interconnected Microsoft is.
3:04Look, there's only a few places in the world
3:07where they don't have a presence.
3:08There's not that much presence here in Africa.
3:10Okay, I guess they got a couple of points of presence
3:14here and there,
3:15and then there's their main one in South Africa.
3:17Pretty much nothing in all of Russia.
3:19Big surprise there.
3:20They do have some in China though.
3:22So anyway, you get the idea there on what's going on.
3:24So these again are broken down into several categories.
3:28First of all, there's the geography again,
3:30pretty much a continent or a country in general,
3:33and then it's broken down into a smaller area.
3:35Like within the US, there's East US,
3:38there's South Central US.
3:40What's this one?
3:41West Central US.
3:43This was the first, no, that's not the first one.
3:45This was the first one.
3:47West US over here in the Los Angeles area,
3:49if I'm not mistaken.
3:50And one thing that's important
3:51is when you choose the location,
3:53you have to know what it supports.
3:55So if you chose West US, for example,
3:58you go down here,
3:59notice that there are no availability zones here.
4:02I'll talk to you about that again in a moment,
4:04but that's a way that you can kind of fail over
4:07if there is a problem that occurs.
4:09Also, not all data centers, not all, excuse me,
4:12not all regions will support all industry compliances.
4:16Now here, we've got quite a few.
4:17Okay, there's all of these different ones,
4:19but there's also some missing.
4:21So there's no GDPR, which is a European standard.
4:25You might still have to support GDPR
4:27even if you're in the United States,
4:29as long as you do business in the EU.
4:31So you have to look out for that sort of thing.
4:33What are the kinds of compliances that they fall under?
4:36Anyway, if we get off of that one
4:38and go to another one like the one in Phoenix,
4:40you'll see here that we do have availability zones
4:44with three total availability zones.
4:46So let's talk about what an availability zone is.
4:49An availability zone is,
4:51let's take a look at Phoenix here that I'm already on.
4:54There's kind of the main data center.
4:56I don't know if Microsoft would call it that,
4:57but we'll call it that for the time being,
4:59like a main data center.
5:01And then there are other physical data centers,
5:04usually within just a few miles of the first one.
5:06So I think one of the data centers they have
5:08is in the downtown area.
5:10And then sometimes other data centers
5:12will be separated by just a few miles.
5:15One of the data centers I saw, I can't remember where it was,
5:17it looked like it was just maybe three or four miles away
5:21from the first data center.
5:22And that again, is sort of something where to go wrong
5:25with our first location for our data or resources,
5:29then we could fail over to another location,
5:32another part of the availability zone.
5:33And that's for high availability, of course.
5:35Okay, now the next thing I'll point out
5:37just real quick here,
5:38Microsoft has already concluded the project
5:40I'm about to show you.
5:42So it's not current right now,
5:43but it could spark up again in the future.
5:46And that would be this, Project Natic,
5:49I think is how they pronounced it, N-A-T-I-C-K.
5:51They had a data center.
5:53Actually, let me refresh the page.
5:54I think it shows it coming up out of the water
5:56or something like that.
5:58I guess not.
5:58Anyway, oh yeah, there it is.
6:00They have a data center,
6:02it's about the size of a small submarine, I guess,
6:04underwater off the coast of Scotland.
6:06And what they're doing there is they're taking advantage
6:09of the cold seawater on the ocean floor
6:12to cool that data center.
6:14I don't know how they circulated the water
6:16and made it cool and everything,
6:17but they figured out a way.
6:18Obviously, it's watertight,
6:20and it doesn't have any oxygen in there.
6:23So as you might've guessed, also, it's unmanned.
6:26There's no people in there.
6:28And they actually pumped out all the oxygen,
6:31filled it up full of nitrogen,
6:32because oxygen can contribute to things like corrosion
6:35and stuff like that.
6:37And the human element also contributes to certain failures.
6:42So people bumping into things,
6:43accidentally disconnecting things, stuff like that.
6:46Like I said, the project's concluded now,
6:47but it was on the ocean floor for two years
6:50before they brought it back up.
6:51Oh, I think that's the manager guy right there,
6:53if I recognize that guy correctly.
6:55Yeah, there's him there, I think.
6:57Anyway, really cool project.
6:59It had a big power line that went right to it.
7:01This is how they dropped it into the ocean.
7:02And this is what it looks like
7:04when you roll out the data center out of the shell.
7:08Okay, so this is called the payload,
7:10where all the servers are.
7:11And this is called the shell, the actual housing.
7:13What I found was kind of funny was,
7:15you would think there would be some kind of motorized,
7:17automated way for them to roll it in and out.
7:19No, what they use is they use these big hand cranks
7:22with come-alongs, and they just had to take a big lever
7:25and just, you know, on a chain,
7:27and just pull the whole thing into the shell.
7:30But yeah, there's all the servers and everything.
7:32You can see the, looks like cooling.
7:33That's probably where the cooling is right there.
7:35I don't know for sure, I'm just guessing.
7:36Yeah, because those look like radiated fins,
7:39like from an air conditioner or a heat sink.
7:41So they might've pumped the water in through there.
7:42But anyway, regardless, there it is.
7:44And look, it must've been a great success
7:46because look how happy this guy is.
7:48Here's another article on it.
7:50That's not a Microsoft employee, by the way,
7:52unless it's one of those guys that just stands around
7:54and watches other people work.
7:56Guess here they're blasting all the barnacles off of it.
7:58And there's the quaint little Scottish town
8:01right up here in the hills.
8:02Fun fact, I was actually born in Scotland.
8:04Anyway, oh yeah, I like this picture right here.
8:08It kind of reminds me of the amount of closet space
8:10my wife gives me.
8:11By the way, if any of you were OCD,
8:13do you see anything here that might bother you?
8:15Yeah, sure bothered me, look at this.
8:17That sticker was crooked like that for two years
8:20on the bottom of the ocean floor.
8:22They should've sent divers down there to fix that,
8:25but they didn't, cheapskates.
8:27Anyway, of course I'm being facetious, or am I?
8:31Anyway, enough of that.
8:32In the next video, I'm gonna just take you on a little tour
8:35of Microsoft Data Center.
8:36And it's also something you can do yourself,
8:38and I'll put the links for all that down below.
8:40Actually, it links right from here.
8:42We'll go right here next.
8:43We're gonna go to take a tour in the Microsoft Data Center.
Touring Microsoft Datacenters
0:00All right, let's get back to our discussion of data centers.
0:04So, by the way, I don't know why the earth is all gray and carbon looking here.
0:08It must have been scorched earth or something like that.
0:12The other thing I want to point out, though,
0:12was I forgot to mention this in the previous video.
0:15Microsoft says that the failure rate for the servers
0:19that were in that undersea data center
0:20were only one-eighth as bad as something
0:24that would be on a land-based data center.
0:26Usually, Microsoft offers five nines, which is 99.99,
0:30actually four nines, 99.99% uptime.
0:35It's not a guarantee that they'll be up that much,
0:36but if they fail and it exceeds that failure rate,
0:41then they will somehow compensate you.
0:43I don't know.
0:44So let's go ahead and take a tour.
0:45Okay, so we're going to look at the Microsoft Data Center.
0:48And I click right there and you can do the same as well.
0:50Links should be down below if you want to follow along for yourself.
0:53And here we go.
0:56So there's actually a couple of websites
0:57that Microsoft has that makes this available.
1:00I'm not sure if there's really much difference between any of it.
1:02And somehow if I move my mouse pointer around,
1:04there's a little light that follows it also.
1:06Maybe we're under spotlights for surveillance or something.
1:09But it shows a checkpoint.
1:12As you can imagine, when you drive up,
1:14you have to get past the security guard at the front gate, right?
1:18We'll talk about that later on, I think,
1:20in another video further down in this course.
1:22So physical security is critical.
1:24There's a perimeter fence.
1:25I don't know if Microsoft has them,
1:26but some data centers also have armed guards.
1:30Also, in the global data centers
1:32that I showed you in the globe that was previously there,
1:35not all the data centers appear there, by the way.
1:37There are some government ones that don't appear on that map
1:40and that are deliberately obscured.
1:43I think one of them in Arizona is in Camp Verde.
1:45I'm probably not supposed to know that, but anyway.
1:47They also do a lot of recycling there.
1:50In fact, I just learned this this past week.
1:52I knew they disposed of their hard drives.
1:54When the hard drive fails, they have to dispose of it somehow.
1:56And I knew that there were machines that they used
1:58to kind of grind them up, but I didn't realize how much.
2:01Apparently, they're essentially ground up to virtually powder
2:05when they have a failed hard drive.
2:08And then that's recycled somehow.
2:09I don't know how they do that, but anyway.
2:10Here's their carbon usage goal right here.
2:13You know, sustainable, renewable energy and the like.
2:17Now let's go ahead and get into the lobby.
2:20So first thing I want to point out,
2:22when it comes to entering the lobby,
2:24it looks like you can use an AI assistant here as well.
2:26That's new.
2:27That wasn't there last time I was here.
2:28Anyway, you can see there's this very friendly person
2:30behind the glass, ready to greet you.
2:33Now, I did learn some other things this past week
2:36about this whole process,
2:37because I talked to one of the people
2:40that's toured a Microsoft data center.
2:42I think he toured the one in Dublin.
2:44He's Irish.
2:46And in other news,
2:47he also said that they had to put a hard stop
2:50on further expansion of data center
2:53in the Dublin area in Ireland,
2:55because they're consuming all the electricity in that area
2:58and rolling brownouts are becoming a thing there.
3:01So I guess they better get
3:02onto that sustainability energy a little faster.
3:05But in order to even get in here,
3:07you have to sign three contracts.
3:08You have to pass a background check.
3:10There are multiple doorways for two-factor authentication.
3:14So that's actually,
3:15they're talking about the man trap over here
3:17is what he was talking about.
3:18You have to have a physical key,
3:19which requires a work ticket of some kind.
3:21And when you go in and when you exit,
3:24by the way, none of that information is in this tour
3:26that I'm showing you right here.
3:28When you enter, you are weighed.
3:30Yeah, they'll take your weight.
3:32So you might wanna skip breakfast on that date.
3:34And then they also weigh you on the way out.
3:36You can probably understand why.
3:38They want to know if you brought something in
3:41and you're suddenly lighter when you come back out
3:43so that you might've deposited something in there
3:45that you shouldn't have.
3:46And they wanna make sure
3:47that you're not walking out with something
3:49that you shouldn't have.
3:50Some, I don't know, hard drive or whatever.
3:52So yeah, pretty stringent security there, folks.
3:55But these man traps here,
3:57which are also known as security vestibules.
4:00I guess man trap sounds a little bit too much
4:01like some kind of nightclub or something like that.
4:03Anyway, these security vestibules,
4:07if you know how those work, there are two doors.
4:10First of all, you have to pass some kind of security measure
4:12to get into the first door.
4:13A lot of times it's to buy,
4:14I don't know how it is at Microsoft,
4:15but a lot of times it's a biometric,
4:18like a fingerprint or an iris scan, something like that.
4:21They used to do cornea, not corneas, retinal scans.
4:24But as people age,
4:26the retina actually does change a little bit.
4:28So they've now gone to iris scans in a lot of locations
4:31and you might have to have a pin.
4:32So there's two factors of authentication that go on there.
4:36Most data centers,
4:36you also have to be visually observed by a guard.
4:40Like, I don't know if she's a guard or not.
4:41I don't know if that's her role there,
4:42but that's similar to what could happen there.
4:45Then once you're inside of there,
4:46you may have to pass another security measure
4:49before the second door opens.
4:51And if you fail,
4:52then they will trap you in there until security comes, okay?
4:54What else we got here?
4:56Looks like a nice little break room over there, okay?
4:58We don't want to explore that.
4:59But anyway, we'll go into the operations room.
5:02I did learn, and you can look at that if you want to,
5:04but I did learn that most of these data centers
5:07only have about 14 employees that run the data center.
5:10Of course, there's other people that do things like maintenance
5:13and, I don't know, cleaning or groundskeeper.
5:15There's the security guard and all that stuff.
5:17But I mean, the actual data center doing IT stuff,
5:19there's usually only about 14 people that run that whole thing.
5:22Anyway, you can see how everything's measured here.
5:24They do have lots of sensors.
5:25I'll talk to you about that later on in the course.
5:29But they have a staggering amount of sensors
5:31that determine things like temperature
5:34and failures of various types
5:35and electrical consumption and that kind of thing.
5:38Anyway, there's little dots you can click on throughout here.
5:40I'm not going to exhaust all of those.
5:41AI is, of course, becoming a big thing worldwide.
5:44There's also a video you can play here
5:46where someone will talk to you about what goes on here.
5:48But anyway, let's go into the mechanical area.
5:50I'm not going to really fully explore this.
5:52This is all just things like your chillers or coolers,
5:55your power, all that sort of thing.
5:58Okay, so these are the coolers over here, I think.
6:00Cooling, right.
6:01And then this is the power over here on the right.
6:03But we're going to enter the server room.
6:04We're going to get right there.
6:05That's where all the good stuff is.
6:07Now, one thing I'll point out real quick here
6:09about Microsoft's server room
6:12is that it is just almost famously boring, okay.
6:17Compare this server room.
6:19And by the way, this looks better
6:20than the previous version I saw.
6:21But it's not very colorful,
6:23not a lot of decorative LEDs and stuff like that.
6:26Compare that to the Google data centers.
6:29And look how happy these Google employees are.
6:30They must like working there.
6:33That's not showing what I thought it was going to show.
6:36Okay, here we go.
6:37Look how colorful their data centers are.
6:40Wow, wouldn't you rather work at Google than at Microsoft?
6:42Look at these.
6:43Oh my gosh, these are beautiful.
6:44But there's actually a good reason
6:46for them being boring as well.
6:48Microsoft wants to commit all their resources
6:50to actual productivity.
6:51One of the people I heard talk about this last week
6:53said that they can stand these data centers up
6:57in an amazingly fast period of time.
6:59And of course, there's got to be permits
7:01and all that stuff.
7:01All the red tape is different
7:02than what I'm talking about here.
7:03But the actual shovel, shovel in the dirt
7:07to standing up the data center can take place,
7:09I think they said in eight months.
7:11And they don't do a lot of fancy stuff here.
7:13In fact, a lot of the bolts that connect
7:16a lot of the external steel structure,
7:18they don't even trim off the bolts.
7:20They just leave everything that way, okay?
7:22But what I want to get to here
7:23is to show you some of the server blades.
7:25So Microsoft designs their own server blades.
7:29This is just a bunch of disk blades.
7:31That's what JBOD is,
7:32just a bunch of disks in there for mass storage.
7:36They have typically used a lot of hard disk drives
7:39in the past, especially for things like cold storage
7:42or storage that doesn't have to be readily available
7:45quite as fast, okay?
7:46For hot data, they'll usually put that on SSDs.
7:49That's transitioning.
7:50Why?
7:51Well, a couple of reasons.
7:52Number one, hard disk drives are traditionally larger
7:54in size than SSDs.
7:56So that's one reason why they were favored there,
7:59just a higher density of data.
8:00But SSDs are catching up.
8:02You're starting to get more density out of SSDs
8:05than we've had in the past.
8:07But the overriding factor there really is power consumption.
8:10A hard disk drive with spinning platters
8:12uses a lot more energy than an SSD.
8:15Even though SSDs are more expensive,
8:18that gap is also shrinking.
8:19Anyway, that's a JBOD blade.
8:21That's what that one looks like.
8:22And then this would be one of their compute blades,
8:24which has the processor and RAM and all that stuff on it,
8:28and the motherboard.
8:29Microsoft does not buy these off the shelf
8:32from Dell or Lenovo or whoever, or HP.
8:35They actually design their own systems,
8:38and then they outsource them
8:40to have one of those companies make them for them.
8:42And they're unique and proprietary just to Microsoft.
8:46I don't know how my scrolling got all weird, but anyway.
8:49You can explore that a little bit further on your own as well.
8:51This one's a new one, Azure Maya.
8:54It's funny, I read that as Azure Mafia when I first saw it.
8:58For all I know, the Gambino family's controlling
9:00this whole data center.
9:02I'm going to go here into the circular center,
9:04and this is where a lot of the backend stuff
9:06takes place here as well.
9:08I don't really see any here.
9:09Probably it's in a different area.
9:11But they also have in the telecommunications area,
9:15or the network room, there it is.
9:16Let's just go in there.
9:16Yeah, here it is.
9:19Notice how boring this looks.
9:20Again, there are a lot sexier data centers in the world
9:23than what Microsoft has, but they get the job done.
9:27This is plywood on the wall.
9:28It's even a special kind of plywood.
9:30I wonder if this says anything about it.
9:31Oh yeah, this plywood is treated with special coating
9:34that does not release particulates
9:36for controlling dust.
9:38Wow, I guess they didn't get that at Home Depot.
9:40Anyway, I'll leave the rest to you.
9:42There's a lot of different little buttons
9:43and little dots here that you can click on
9:46to get some interesting information.
9:48But if you're new to the cloud,
9:50new to Microsoft data centers,
9:51this might get you a long ways into understanding
9:54what it's capable of.
What is Azure?
0:00All right, so let's summarize some of the things we looked at in terms of Microsoft's data center
0:04with really a discussion of Azure. So, Azure is an umbrella term. It's Microsoft's total cloud
0:12that they use for organizations. So, this will include a lot of different sub-products, if you
0:18will. So, if you just have Azure, you don't really have much. It's like having a toolbox with no
0:23tools in it, okay? You have to put tools inside. One of those would be something like Entra ID,
0:28which is probably the most foundational part of this. It used to be called Azure Active Directory.
0:34Then they changed it to Entra ID. I think there was actually another name before all of this as
0:39well. But anyway, now it's called Entra ID. That's where your identity is for things like your user
0:44accounts and groups and certain other things. But primarily, it's for identity, as the name kind of
0:50implies there. There's also Intune, which is another significant part of Azure. This is the
0:57mechanism that you can use, the cloud-based mechanism, to manage your devices. So, things
1:03that we used to do on-premises in Active Directory, such as work with group policy objects.
1:09The group policy objects can largely be replaced by what Intune can do. It can do most, if not,
1:16well, I don't want to say all of it, most of what group policy objects used to be able to do.
1:20And it can also replace a lot of what we did in System Center, which is also known as System Center
1:26Configuration Manager, or Configuration Manager, or ConfigMan, or CM. That's gone through another
1:32bunch of changes in terms of the terminology or names that we all refer to it as. But anyway, CM,
1:38Config Manager, is all on-premises. Of course, Intune would be in the cloud. And there are many
1:44other products, Defender, XDR, Purview, Sentinel. Those are just a few that come to mind right off
1:51hand. But gosh, there's a ton of products underneath the Azure cloud. Now, we looked at the
1:56data centers in our previous nugget here, previous video. There are over 400 of those data centers,
2:02and they're still growing. They're still building them. And 70 different regions. This does not
2:07really touch directly on what we do, other than the fact that we use AI. However, Microsoft is huge
2:13in the AI data center capacity now. Anytime you use Copilot, that's part of their AI. That's their
2:20engine. They have dedicated two gigawatts for AI data center capacity. So how much is two gigawatts?
2:29That is enough flip-the-switch power. In other words, how much available power there is
2:34at any given moment. It's enough to power one and a half million homes, or a medium-sized city.
2:42That's how much that is. It's an enormous energy requirement for that. Anyway, I just threw
2:49that in there. As I mentioned before, they're looking at 70% renewable energy and improving that.
2:54There's 165,000 plus miles of fiber optic or subsea optic cable to transmit data. And I think I
3:05heard this past week that it's terabits worth of bandwidth that they have there. There's about
3:12a billion users supported in Azure, with millions of organizations involved. In other words, millions
3:19of customers, if you will. Microsoft invests about a billion dollars annually in
3:25cybersecurity and infrastructure resilience. And I expect that really to kind of grow as well.
3:30And remember we talked about some compliance earlier, like GDPR, HIPAA is another one,
3:36Sabine's Oxley, some other stuff like that. All of those regulatory government requirements,
3:40there's about 90 compliance certs that Microsoft possesses across their data centers.
3:47And so that is Microsoft Azure kind of in a nutshell,
3:51but there's a lot more to that, which we'll explore as we continue on.
CapEx and OpEx
0:01And finally, let's take a look at a good justification
0:05for using something like Microsoft's Cloud.
0:07And again, you know, really, it doesn't have to be only Microsoft's Cloud
0:10because there's a lot of other clouds out there for different purposes.
0:13Amazon Web Services or AWS.
0:16VMware has a cloud, although it doesn't serve the same purpose.
0:20Google, that's another one that is possibly in some ways
0:23a competitor to Microsoft's Cloud,
0:25although I would have to say that on scale
0:28and when you look at feature per feature,
0:31probably Microsoft is definitely the leader there.
0:33And that's not a bias of any kind.
0:35That's just really the way it is.
0:37But let's take a look at how things work.
0:38So let's say that you have a business
0:40and your business is in sports memorabilia
0:43and you sell those little sports figure bobbleheads.
0:48Have you seen the bobbleheads?
0:49They have a lot for baseball,
0:50but I think they have them for football as well.
0:52These players and they're on a little body.
0:55There's a big head on a little body.
0:56It kind of goes like this.
0:58It bounces back and forth like this on a spring, just like that.
1:02Okay, that was a pretty good imitation, I thought.
1:04Anyway, so maybe that's your business
1:06and this is how it looks most of the year.
1:10So these are the dollar sales that you make
1:13and these are the months of the year.
1:15Now you'll see why I'm going to do this in a moment,
1:17but we're going to start our fiscal year in April.
1:20That'll just make it easier.
1:22So we have April, May, June, July,
1:25August, September, October, so forth
1:27until we get to Super Bowl season.
1:30So in Super Bowl season,
1:32we kind of would expect our sales to really get up there.
1:36So we'd have February and March right here, okay?
1:39So most of the year,
1:40our sales are just kind of, eh, they're okay.
1:43They're not that great, but they're okay.
1:45And then when it comes to Super Bowl season,
1:47and especially when you have a winner for the Super Bowl,
1:50the sales go, wing, like this.
1:52Now everybody wants whatever the bobblehead is
1:55for the star quarterback or whoever in football.
2:00And yes, I'm talking about American football,
2:02also known as the real football.
2:05That other thing is actually just soccer.
2:07All right, I've lost half my audience right now, haven't I?
2:11But you get the point.
2:13So we have demand that is not consistent all year round.
2:17A lot of businesses are like this.
2:19Another thing you can think of there is Christmas season.
2:23Okay, the holiday season,
2:24where again in usually December or maybe November, Black Friday,
2:29those sales shoot through the roof.
2:31And then after Christmas and after all the returns come in,
2:34in January, everything goes back down again, right?
2:37So let's say that in our company,
2:40we hit this time of year last year and our servers crashed.
2:45They could not handle the load
2:47and we lost a lot of business.
2:49It was a professional embarrassment.
2:52Everyone went to a competitor.
2:54And so I took our, I'm pretending I'm the person here.
2:58I took our CEO and our CFO and our CIO and all the C-suite.
3:04I took them to an expensive lunch at Arby's
3:07and I sat down and I drew out on the little paper mat
3:11on our trays there how much money we lost
3:15and the value of buying a really beefy server
3:19to handle all of this, okay?
3:20Now, yes, there's a lot of things
3:22that fall through in the analogy, okay?
3:24In a real life situation,
3:25we're not going to have a server,
3:27a single server to handle all this,
3:29but we're going to pretend as if we do, right?
3:30So I was able to finally convince them.
3:32They said, all right, fine.
3:34Have it your way, James.
3:35You can buy an expensive server.
3:37So what I do is I go to Dell and I look up a rack server.
3:42I say, oh, this server will do it pretty well.
3:44It starts at only $12,000.
3:46Well, I was kind of fiddling around with this earlier
3:49and I'll be honest, I just started throwing money at it.
3:52I just started check boxing things that looked expensive
3:55just to kind of make a point here, okay?
3:57So anyway, I added a bunch of stuff on there,
3:59more processors, more memory, all kinds of stuff.
4:02And so I'm not even done yet.
4:04And it racked up $33,906, $34,000 essentially.
4:09And like I said, I just started picking expensive stuff.
4:12This is why they don't let me manage the servers
4:14at CBT Nuggets.
4:16I get carried away, folks.
4:17Anyway, so we got a $33,000 to $34,000 investment now.
4:23And this year, when Super Bowl season came around again,
4:26we didn't have a crash because we were able to meet the demand
4:30using my fancy new expensive server, okay?
4:32The executives were pleased and everything.
4:34However, when it came time for our semi-annual report,
4:37what would that be, in June or July?
4:40Right here, the executives wanted to know,
4:43how much were we using that fancy server we bought you?
4:46Oh, well, you know, we're really only using 15%
4:51of its total capacity here from April through July.
4:56It's only been 15%.
4:5715%? You mean you spent $34,000 on a server
5:02and we're only using 15% of it?
5:04Well, yeah, but it's because I didn't want it to crash again
5:08in February.
5:09Well, they might not like that,
5:12that this is largely wasted server resource utilization,
5:16this whole area right here, most of the time.
5:19Now, any reasonable executive would understand
5:22how that scales and the importance of that,
5:24but not all executives are reasonable, are they?
5:27And I can't just go to Dell and say,
5:29hey, you know what?
5:30That fancy server you sold me last year,
5:32turns out we only used it 15% capacity most of the year.
5:36So can you give us back the 85% that we didn't really use?
5:40Nope, they're not going to do that, are they?
5:41Same as if you buy a steak at a restaurant
5:44and you only eat half of it,
5:45they don't give you 50% of your purchase back.
5:47Believe me, I've tried.
5:48Now, this is really where something like Azure can be useful.
5:53Because in Azure, what you can do
5:54is you can build virtual machines in the cloud.
5:57So now, again, this is our sales,
6:00and these are the months over here,
6:02and I'm not going to draw in all the months,
6:03but you get the idea.
6:04So we're like this most of the year,
6:07and then in February and March, whoop, way up there.
6:11What we can do in Azure with the virtual machines we build there
6:15is we can do something called scaling up
6:17or scaling out, either way.
6:18Scaling up means that we just add more resources.
6:22So let's say that this virtual machine
6:24that we're using in Azure has, I don't know,
6:26four gigs of RAM, one CPU, something like that.
6:32Well, we can set it up, and this can be automated, by the way,
6:35so that it triggers within, oh, maybe a couple minutes even.
6:38When our sales start to climb,
6:40then it can automatically add two CPUs, four CPUs, whatever.
6:45It can add eight gigabytes of RAM, 16 gigs of RAM.
6:48However much we need, it can scale it up within our parameters.
6:52And then when we're done, when March has come and gone
6:55and we've sold out of bobbleheads, it goes back down.
6:59Then it just goes right back to what we had in the first place.
7:03And we don't pay for the excess server resources
7:07that we're not using.
7:08That's a big factor when it comes to Azure resources.
7:12And that's scaling up.
7:13By the way, just since I already mentioned it,
7:15scaling out would mean that we just take that server,
7:18this first original server here, and we just add another one.
7:22So we have another server now that's four gigabytes and one CPU.
7:26I'm running out of room.
7:27But anyway, you get the idea.
7:28You can add, scale out to two servers, scale out to three servers,
7:31however many you need.
7:32It's all kind of dependent upon your goals and everything.
7:34Anyway, that's another good reason to be able to use Azure resources
7:39for things like that.
7:40And that's just kind of a short list.
7:42There's a lot more involved than just those reasons.
7:45And, in fact, I'll have to say,
7:47those of you that are accustomed to on-premises Active Directory,
7:51Microsoft will probably still support it for a long time.
7:53I'll mention this again later in the course as well.
7:55But their plan right now is they really don't want people being on Active Directory.
8:01I mean, it's been around since 2000.
8:02It's already been around 25 years.
8:04It does have some security exploits that really have never been fully resolved.
8:11And Microsoft is strongly encouraging everyone to move their identity,
8:14especially, into the cloud.
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