Overview
Join James Conrad as he guides you through common local computing situations and then provides paradigm shift guidance to Microsoft's cloud solutions.
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James got his start in IT by becoming the de facto IT professional for a nonprofit organization — and the rest was history. He has over three decades of IT experience.
Understanding Local and Cloud Perimeters
To understand Microsoft's cloud resources, let's get perspective and start small and local.
Knowledge Check
Which of the following companies provide cloud services? (Choose four)
Understanding Traditional Corporate IT
There's not much need for the cloud until you understand corporate IT.
Knowledge Check
What is a Co-Lo?
Overview of Microsoft Cloud Resources
Microsoft has invested billions of dollars into their cloud resources. Let's take a look at some of the resources that are available to us.
Knowledge Check
How many miles of fiber optic and subsea network cabling is in the Microsoft cloud?
Understanding Cloud Locations
Let's take a closer look at where Microsoft's datacenters are located, and where your data might exist.
Knowledge Check
Which of the following can be stored in Microsoft's cloud? (Choose three)
Leverage Economies of Scale
Purchasing compute volume in large quantities amounts to savings that can be passed on to Microsoft's cloud customers.
Knowledge Check
Economies of scale indicates that when larger quantities are purchased, a lower unit cost is usually the result. True or false?
CapEx Vs OpEx
Capital Expenditures (CapEx) can substantially increase IT expense, whereas Operational Expenditures (OpEx) can reduce IT expense.
Knowledge Check
Which of the following is true of Capital Expenditures? (Choose four)
Conclusion
I hope this has been informative for you and I would like to thank you for consuming.
View Transcript
Understanding Local and Cloud Perimeters
0:00[AUDIO LOGO]
0:06You know, one of the challenges with the cloud, especially
0:09if maybe you haven't been experienced with it before
0:11or you've kind of just heard the term the cloud,
0:15and it just sounds kind of enigmatic.
0:18It sounds like kind of like a mystery, this undefinable thing
0:21that we think is probably on the internet somewhere.
0:24So what really is the cloud?
0:26How do we kind of corral it mentally
0:28and understand what it is and how
0:30it relates to some of the things we're
0:32going to be using particularly in our topics
0:34here, which revolve around Microsoft 365?
0:38And to discuss that, I think it's really better if we
0:40start just locally, right?
0:42OK, so if you just have a local computer,
0:44let's say a home computer, you got this home computer
0:47right here--
0:48and this tower computer.
0:50And you've got a few things that you can visually
0:52see on it, right?
0:53You got-- oh, there's probably a little place here for power
0:56to plug into the wall.
0:57There's probably a card or two here, probably a video card
1:01here.
1:02In this video card, you plug in a kind of an external monitor,
1:07I'm sure.
1:08And maybe that's what you're watching this on right
1:10now, something like that.
1:11You have probably several USB ports.
1:16Attached to one of those might be your keyboard.
1:18It looks like it's got bread crumbs or something like that
1:21on there.
1:21You probably got another thing attached to it.
1:23That's probably your mouse or your track ball
1:25or something like that.
1:27What else would you have?
1:28Maybe a webcam.
1:30And that's kind of what I've got too.
1:32That's what I'm recording on.
1:33I've got a computer much like this
1:34with all of these various things attached to it.
1:37Now, what are we missing there?
1:38Well, there's also a motherboard here.
1:40And I'm not going to be able to draw that in there
1:42because, as you can see--
1:43if you've never seen any of my videos
1:45before, as you can see here, I have limited artistic ability.
1:49I know.
1:50It's shocking looking at this.
1:51You probably think that I'm going to make an NFT out
1:54of this or something and make a billion dollars or something.
1:57But anyway, inside of this, we also have other things,
1:59don't we?
2:00We have a CPU, or the processor.
2:05Basically, it doesn't really do the thinking for our computer.
2:08But we kind of say that it does the brains.
2:11It's the brains of our computer.
2:13We also have memory in here.
2:15Memory sticks is what we usually call them.
2:17There's probably two to four in most home PCs.
2:20Then there's one more thing which I haven't really
2:22discussed yet.
2:23And that would be the storage.
2:25And on this storage is usually what we call our hard drive.
2:29Very often, it's a rectangular device
2:32that has magnetic platters inside of it.
2:34You never open and look at it.
2:36You know what these are, right?
2:37Hard drive.
2:38And that's where we store everything.
2:40That's where we store our data.
2:43These would be family photos, Word documents,
2:47videos from your family vacation,
2:49or any other kind of videos.
2:51This is also where we would store our applications
2:53primarily.
2:55And of course, the overarching thing there
2:57would be your operating system.
2:59Usually, it's like Windows or something like this.
3:01But anyway, all of this is self-contained within
3:05a single unit right here.
3:07And even if you're someone who's not
3:09been accustomed to computing in the past
3:11or something like that, or you're
3:12getting new into technology, this is all under your purview.
3:15It's all under your control.
3:17You may have installed the operating system.
3:19You may have installed the applications.
3:21You put the data on there.
3:22You copied the photos there.
3:24Now, take all of that, and add the internet.
3:28So beyond all of this, you probably
3:30have some kind of a Wi-Fi.
3:31I don't even know how to-- if I can put in a Wi-Fi thing here.
3:33Let's just put it off to here and make it
3:35a Wi-Fi signal that's reaching out to your internet service
3:40provider that connects to your office or your home.
3:42And then that, of course, in turn
3:45will connect to the internet at large.
3:48And this is a lot of times where just the mental connection
3:51between the cloud and the internet
3:53gets a little fuzzy because the cloud is
3:57contained in and dependent upon the internet.
4:01Without the internet, we have no cloud.
4:03But the internet is not equal to the cloud.
4:06There's not an equal sign between those two.
4:09And the cloud is actually a number of different vendors.
4:13There are different companies that comprise the cloud.
4:16And they all have their own cloud, so to speak.
4:19One of those obviously is Microsoft.
4:20You also have other companies out there.
4:22I'll just put some out here.
4:23There's, again, Microsoft.
4:25There's Amazon.
4:26They have something called Amazon Web Services, or AWS.
4:30VMware is another company out there.
4:33Who else?
4:33Well, Google.
4:35Google has a cloud as well.
4:37These are all gigantic, by the way,
4:39multibillion dollar organizations
4:42with multibillion dollar investments in their cloud
4:45solutions.
4:46But if I'm at home here and I'm on my computer
4:49and my internet goes down, which it did, by the way, just
4:52last week, and when that happened,
4:55I was limited to only what I could access
4:57on my local computer here.
4:59It was debilitating not to be able to connect
5:02to the internet and all of these cloud services out there.
5:05This went on for like two days.
5:07I didn't know what to do with myself.
5:08It was terrible.
5:09Couldn't watch Netflix.
5:11Couldn't get on TikTok.
5:12Couldn't access Instagram, any of that kind of stuff.
5:15All right, now this--
5:16I just kind of want to point out what some of this stuff is
5:19and where it exists.
5:21We're going to get into more detail about that later on.
5:23But this is where we start.
5:25This is us in our own self-contained environment.
5:29And this is the cloud out here encompassed
5:32within the internet.
5:33All right, so there's a separation there.
5:35We have local resources here in our own office
5:38or in our own home.
5:39And we're using our phones, our tablets, our laptops,
5:43our desktop computers.
5:45And we're in almost constant communication
5:47probably to some kind of a cloud resource much of the time
5:51without even really realizing that it's going on.
5:54Now, in the next Nuggets coming up,
5:57we're going to be discussing some of those resources
5:59and the advantages of using them.
6:01I hope this has been informative for you,
6:03and I'd like to thank you for viewing.
Understanding Traditional Corporate IT
0:00[AUDIO LOGO]
0:06In our last Nugget, we took a look
0:08at kind of a typical PC situation,
0:10where you have a home computer, maybe in a small office.
0:13You have your phones.
0:14You have your tablets, all these kinds of things.
0:17And that doesn't relate to the cloud on its own.
0:20However, in today's society and in today's technologies,
0:24just about everybody is using the cloud,
0:26whether they realize it or not.
0:28Now, let's take this to a company level.
0:30Now, on a company level, we start off
0:32with some of the same stuff, right?
0:33We still have users that are all using maybe desktop PCs.
0:37A lot of them will be using laptops and/or tablets.
0:41We may have cell phones that we are also managing here.
0:45But in kind of the traditional business sense,
0:48if we're not using the cloud particularly,
0:51then all that stuff's kind of contained within our company.
0:54So maybe this is our own office building here.
0:57And maybe this desktop computer and the lap--
0:59all those little devices there are located in my corner office
1:03right here.
1:04Now, I'm going to be working on documents.
1:05And I understand that as a user.
1:07And those documents are going to get saved somewhere, right?
1:10So we tend to think in a local situation
1:12that our files are going to get saved either
1:14on the local hard drive right here.
1:16We call them hard drives.
1:17But very often, they're SSDs now, Solid State Drives.
1:21Or maybe if we do have maybe a mapped network drive, then
1:25it saves it to a network location.
1:28So very often, a data center for a corporation
1:31that runs their own data centers will have those
1:34on the bottom floor very often.
1:36It makes it easier to load and unload
1:38big things like big racks, big power supplies, big UPSes,
1:43which are giant batteries that are backup power,
1:45easier to connect to generators in case
1:48you have a power outage, all that kind of stuff.
1:50So anyway, a lot of times a data center
1:51will be on the ground floor.
1:53So let's say that I'm creating a database, really
1:57a database record, actually.
1:58And it has a new customer-- their name,
2:02their address, what they purchased,
2:04how much they purchased, whatever, stuff like that.
2:06And if I'm entering all that in over the phone with my customer
2:09here in my little corner office on my laptop,
2:11I would understand that it probably
2:13gets self-saved down into our data center here locally.
2:17And that's how it was done for a long time.
2:19Some organizations will still be doing that to whatever degree.
2:23Now, in a strictly corporate environment,
2:25where, again, we're not using the cloud per se,
2:27you might be a big organization.
2:29You might not just have one office.
2:31So maybe this is my Phoenix office where I live right here.
2:33And maybe we have an Albuquerque office here.
2:37And maybe we have a Dallas office.
2:39They're all going to be connected by usually what
2:42we call a WAN link, Wide Area Network link.
2:44So this is something that we pay for to give us a network
2:48connection to those remote offices.
2:50A couple of different ways you could do it,
2:51a few different ways.
2:53It could be a dedicated line, which is very expensive.
2:56Or you could just use your normal internet connection
2:58and create what we call a VPN through here.
3:00But a lot of different ways to do that.
3:01Regardless, we have network connectivity
3:04between our offices.
3:05Now, let's add to that.
3:06Maybe we have so much need for computing resources and all
3:10those sorts of things that our little server
3:13room in our initial office there,
3:14it can't handle it anymore.
3:16So we've got to expand.
3:17And we have to start trusting another company with our data.
3:21Now, we're not in the cloud yet.
3:22But we can use something else here called colocation,
3:26or colo, as we often call it.
3:28This means that instead of using everything--
3:31I might still have a data center in my own office.
3:33But we're a lot of times off-loading that now
3:35into other locations.
3:36These are third parties that we have
3:38entrusted with our data and our computing resources.
3:42And we pay them money to have these big server racks for us
3:46usually.
3:47And it might look like what we have over here on the left.
3:50And to give you some sense of scale,
3:51this might be a person here.
3:53This would be about the approximate height of them.
3:55They're usually, actually about 73 inches, I think--
3:5873 inches high, usually 24 inches wide like this.
4:03And I can't really draw depth.
4:04But from front to back, it's usually 42 inches,
4:07if I remember right.
4:08So you get the idea about how big those particular racks are.
4:11Well, these will store servers in them.
4:14They'll have lots of computing power in them.
4:16They may have multiple processors.
4:18They may have a whole bunch of hard drives as well.
4:21I'll show you some other examples here coming up.
4:23But I just wanted to show you that these
4:25appear in these big racks.
4:26Now, these big racks could have been
4:28originally what was in my own first floor over here.
4:31But these are very likely to be also
4:32what we have in these data centers now
4:35that we are using for colocation.
4:37Now, we still don't have the cloud though.
4:39I'm going to be talking about this in a future Nugget,
4:41about why we would want to move to the cloud
4:43away from all of this.
4:45See, we're still managing everything.
4:47Even these colocations down here,
4:49we can walk into those most of the time.
4:51And we can put in our own servers
4:54in one of these rack positions or our own hard drives in one
4:57of these rack positions.
4:58In colocations, our IT staff is usually walking in the building
5:02and managing all of those things.
5:03Like I said before, we're going to talk
5:05about why we might move to the cloud
5:07instead of using all of this solution.
5:08But before we get to that, I want
5:10to point out that, yes, the cloud can
5:12off-load all of this for us.
5:14It's not going to be for everybody in every situation.
5:17But most companies are using at least some of the cloud now.
5:20And many companies are depending on it heavily.
5:23So we might be able to take all or a lot of this
5:26and just put it into the cloud.
5:27Now, that just gives you kind of an introduction
5:29into how we've traditionally done it.
5:31So in our next Nugget, I'm going to go over a little bit more
5:34of the physical layout of the cloud.
5:35That's one of the things that is a little bit difficult when
5:38you're first getting involved in the cloud is to understand
5:41the physical structure of it, because a cloud, when you think
5:43of a physical cloud, like up in the sky, that's
5:46not very defined.
5:47And it's kind of nebulous and everything like that.
5:49So we want to put some concrete terms on the cloud, how
5:53we connect to it, what it is.
5:55And we'll see that in our next Nugget.
5:57I hope this has been informative for you.
5:58I'd like to thank you for viewing.
Overview of Microsoft Cloud Resources
0:00[AUDIO LOGO]
0:06All right, so in our last Nugget,
0:07we saw how that we might be using something
0:09like a colocation service.
0:11This is before we get into the cloud, of course.
0:13But we might be using something like that in order
0:15to expand our own requirements for data, for storage,
0:20for computing power, and that sort of thing.
0:23This can also be done, by the way,
0:24because maybe in our building, we're
0:26just out of space in our data center.
0:28We don't have room for any more server racks.
0:31Or it might be difficult to put in additional equipment
0:34to support them, such as UPSes, Uninterruptible Power
0:38Supplies, gigantic batteries, basically, other power
0:41generators, all kinds of other infrastructure we might need.
0:43Well, here we can lease space out of a data center.
0:47Now, this is not a Microsoft data center.
0:48But this is just an example of one.
0:51I licensed some images from an organization
0:54that so I could show these.
0:56And you can see here, there's a little bit
0:57of a reflection on the glass.
0:59So you can't really see everything here.
1:00But there's hard drives, it looks like down here.
1:03That looks like a seven by five.
1:05That's 35 hard drives probably right there.
1:09Usually, your power supplies are lower to the bottom.
1:12There's probably some CPUs in the middle
1:14here somewhere, some basically computers, some servers, maybe
1:17some network equipment up in here, switches or--
1:19I don't know-- whatever.
1:20I can't really see it very well through that reflection.
1:22But anyway, it looks like there's more storage up here,
1:25more hard drives up here.
1:27So that kind of gives you a picture
1:29of the layout of how this might look.
1:31They don't all look that same way.
1:33By the way, this is one of the most beautiful data centers
1:35I've ever seen.
1:37If you ever see Microsoft's data centers inside--
1:40and we might be able to get a look at one later on--
1:43they're nowhere near this sexy.
1:45Can I say the word "sexy"?
1:46As long as it's about IT?
1:48OK.
1:48All right.
1:49Anyway, this is what one of them might look like.
1:53Then here's just another big data center.
1:55I think this is actually an artist rendition.
1:57This does not look 100% real to me.
1:59But it gives you the idea there.
2:01And then here's one right here as well.
2:03Again, you can see all kinds of hard drives down here.
2:06This looks like computers through here,
2:08some servers, more hard drives up here at the top.
2:11This one's a little unusual in that it doesn't
2:13follow the straight aisle.
2:14It's got this rounded--
2:15it looks like maybe it's on a spaceship or something.
2:18I don't know.
2:18It's the Millennium Falcon's data center.
2:21OK, that's great.
2:22We see what some data centers might look like, at least get
2:24a concept of how they look and what they operate like.
2:27But where is Microsoft's data center?
2:30Well, it's not in just one location.
2:32That's why it's kind of called the cloud,
2:34because it is more nebulous.
2:37You can't attach it to a single location.
2:40We're talking mostly about Microsoft 365,
2:42I understand, in this course, obviously.
2:44However, Microsoft 365 involves many other services
2:49that we don't always directly touch upon or look at.
2:53One of those is Microsoft 365.
2:55So again, there's kind of a tendency
2:57to say, OK, well, where are the Microsoft 365 data centers?
3:01I don't know.
3:03I do know, and I don't know.
3:04I know that they're dispersed everywhere.
3:06OK, so the cloud--
3:07the data centers are really distributed worldwide.
3:10There are over 160 data centers that Microsoft
3:13has in over 140 countries.
3:16And it's growing all the time.
3:18This is just the most recent data that I could find on it.
3:20So my Microsoft 365 resources--
3:24I live in Phoenix.
3:25So there's a new data center here in Phoenix called West 3.
3:29Yeah, Microsoft's never imaginative with the names
3:31they give things.
3:32I live in the Western United States.
3:34They just decided to create one called West 3 there.
3:36There's another West.
3:37I don't remember which one it is.
3:38But there's another West in the Los Angeles area.
3:40And I can't remember where the second West is.
3:44Anyway, my 365 resources, I requested
3:48that they be placed in West 3 because that's in Phoenix.
3:52And it's in my area.
3:53But I still couldn't point to the exact data center.
3:56They may have multiple data centers in the Phoenix area.
3:59But I still don't know exactly which
4:02server or exactly which rack my Microsoft 365 resources are on.
4:07If I have storage that I'm leasing there,
4:09I don't know where that storage is.
4:11I don't know which hard drive it's on.
4:12And I really don't have to.
4:14But it is a paradigm shift, because if you're
4:16used to hands on in the data center,
4:19installing your own hard drives, replacing your own hard drives
4:22when they fail, installing your own servers there,
4:25and everything like that, you don't do that in Microsoft 365.
4:27And in fact, good luck trying to get into one of the data
4:30centers.
4:31I did a virtual tour through a virtual meeting.
4:34This was about a month ago.
4:35And they were very guarded with what they would allow
4:38you to even look at really.
4:39I mean, they would show it to us, really,
4:40because that's part of the point of it.
4:42So we could kind of get an idea of what it all looked like.
4:44But we were strictly told not to record or take photographs
4:48of anything that we saw.
4:50Now, let's move on though.
4:51I'm going to give you a little bit more details about this.
4:54All of those data centers are connected by networks.
4:57Remember, in our previous slide here, this one right here,
5:01remember, we had these WAN links.
5:02And we didn't really name them.
5:03But these network connections that go between our offices,
5:06those are called WAN links--
5:07Wide Area Network.
5:08Well, Microsoft has a ton of wide area network
5:13links between all of their various data centers
5:16and resources.
5:17In fact, there's 165,000 miles of fiber optic, which
5:22is at this point the fastest kind of network you
5:25can get-- of fiber optic and subsea networking.
5:29Yes, they actually have a networking point
5:32that goes from, if I remember right-- it's
5:34from the coast of Virginia somewhere
5:36over into northern Spain.
5:38It goes all the way across the ocean that way.
5:41If you're familiar with network speeds,
5:43you have kilobits per second, megabits per second, gigabits
5:47per second.
5:49These network fiber optics that they
5:51have can run at 1.6 petabits per second regionally.
5:55That's just super fast.
5:57Now, part of the reason why I'm telling you all this
5:59is because I want you to understand
6:01that Microsoft resources are more than enough for really
6:05just about anybody.
6:07You're not going to exhaust Microsoft's resources.
6:10Now, you might exhaust your pocketbook
6:12because it does get expensive as you get into the higher
6:15echelons of this.
6:16But that's a different topic for a different day.
6:18And Microsoft does also have consultants
6:20that they can offer to you to help you
6:23kind of budget that stuff out.
6:25Overall, it's usually cheaper though
6:26than doing it all yourself locally.
6:29They serve over a billion customers--
6:32wow, a billion customers-- and 20 million companies.
6:35Again, these are also growing.
6:38They service and comply with over 90 compliance
6:41requirements.
6:42These are things like if you're in the health care industry
6:44and you need to store your data in Microsoft's cloud,
6:47and you're paying for some storage there, for example,
6:49well, you would have HIPAA requirements there, right?
6:52As you know, HIPAA is going to protect
6:54the privacy of your data.
6:56In different countries, they have equivalents of that.
6:58There's also financial compliances
7:01that have to be observed, for example.
7:04Microsoft provides a billion dollars annually
7:08just in the security investment here,
7:10just to secure all of this and to improve their security.
7:13They have Microsoft Defender, which of course
7:15is on your local machines.
7:17But it's really much bigger than that.
7:19And it really goes even into their data centers.
7:21They have artificial intelligence and machine
7:23learning to, within moments, detect new threats
7:28on the internet, for example.
7:30Also, Microsoft uses approximately 70%
7:32of their energy from renewable energy.
7:35Now, part of the advantage of that
7:37is not just that it's environmentally responsible
7:39but also that over time, we hope at least,
7:42that that will be less expensive than paying for power
7:44from a utility company.
7:46So chances are that most major organizations
7:49are paying for their power from a utility company.
7:51And we probably don't have 70% in most organizations.
7:55So if we can transfer some of our load
7:57over to Microsoft's cloud, Microsoft 365, azure, some
8:00of their other resources, we can take
8:02advantage of that renewable energy that they offer.
8:05Not only might it be more responsible,
8:08but it could also be a cost savings over time,
8:11especially when you compare it with other cost savings
8:14that you can take advantage of in Microsoft's cloud.
8:16Now, the other thing that I'm pretty excited about really
8:19is this-- underwater data centers.
8:21Yes, underwater data centers.
8:23They also have some space infrastructure,
8:25which we might look at in a future Nugget.
8:26It's mostly related to networking.
8:28But the underwater data centers, let me show those to you.
8:31Here's the website.
8:32I'll try to remember to put a link here
8:34so you can access this on your own if you want.
8:36The article is a couple of years old.
8:37But they took this tube.
8:39It's the size of like a small submarine, I guess.
8:42The dimensions are on here somewhere.
8:43I just don't remember how long it is.
8:45But you can see here that it was under the ocean for two years
8:49off the coast of Scotland.
8:50And you can see it got all kinds of barnacles and things on it.
8:53What they do is they have server racks in there.
8:56And they slide out on some rails.
8:59And they replace the oxygen that's in there with nitrogen
9:03because, apparently, it's better for the long-term life
9:06of the electronic components in there.
9:08Obviously, there's no staff under there.
9:11This is completely unmanned, if you will,
9:13on the bottom of the ocean.
9:15They can also take advantage of the cooling
9:17effect of the ocean.
9:18It's very cold in the ocean.
9:19And therefore, they don't have as high
9:21a burden to pay for air conditioning
9:23and that sort of thing.
9:24I don't know how they circulated the cool through there,
9:26but they did it somehow.
9:28Scrolling down, you can see there's a good YouTube on there
9:30to get a little bit more of a perspective of what
9:32the whole thing looks like here.
9:34There's also another one that's being dropped off
9:36another coast somewhere.
9:37I can't remember where it is.
9:38That one will be under ocean, from what
9:40I've heard, for three years.
9:42You can see they're blowing off all the barnacles that
9:44are on this thing.
9:45Look, there's a bird on there.
9:46The bird is not the property of Microsoft, by the way.
9:49Anyway, so we keep going on down here.
9:51And you can see here, this is where they take the cap off
9:54of it.
9:54And they will slide this out on these rails
9:57like you can see right here.
9:58I think I can actually open this up in another page.
10:00Yeah.
10:00You can see it slides out on these rails.
10:02These are all the servers that they have down there.
10:04It's actually connected to a giant power cable
10:07that powers the whole thing.
10:08And it was under ocean for two years.
10:10I don't remember the statistic, but I think
10:12they said something like it would fail one fifth as much--
10:17the various components would fail one fifth as much
10:20as a data center on land.
10:22Part of that is because there's not
10:23a human in there replacing parts and jostling things around.
10:27I guess the human effect is really quite significant.
10:29Oh, here's another picture that I find quite interesting.
10:31This gives you a little bit of a sense of scale.
10:34Something about this photograph reminds
10:36me of the amount of closet space my wife gives me.
10:38Anyway, also, look at this.
10:40I don't know if you see this.
10:41Are any of you OCD?
10:43Check that out.
10:44That sticker was stuck on that server crooked for two
10:49years on the ocean floor.
10:50Could someone not have straightened that out?
10:54All right, so that gives you some idea
10:55of the resources that Microsoft has available for their cloud.
10:58Stick around for the next Nugget,
11:00where we're going to be discussing really
11:02where the cloud is and the various locations
11:04that Microsoft offers.
11:05I hope this has been informative for you,
11:07and I'd like to thank you for viewing.
Understanding Cloud Locations
0:00[AUDIO LOGO]
0:06All right.
0:06We've been discussing the cloud in various aspects.
0:09One of the things though, that's still a little undefined
0:11is where actually is all of this stuff, right?
0:13So for example, if we take a look at this slide
0:16show that I've been running, this
0:18is stored right now on my local computer.
0:21It is stored in a file location on my drive.
0:23Actually, it's a SSD drive.
0:26But anyway, there's one of-- there's
0:27the first slide I showed you when I did this presentation.
0:30Here's one of the data centers, a couple of the data centers
0:32that we looked at.
0:33And I think I finished with this slide in our last Nugget
0:36that we recorded here.
0:38But guess what?
0:39It's not really just stored here.
0:40It's also stored in Microsoft Cloud.
0:43And the advantage to that is number one,
0:45if my computer blows up, which it's happened,
0:49then I still have this PowerPoint presentation
0:52up in Microsoft's Cloud.
0:53And by the way, whenever I make a change,
0:55look at this, just keep an eye on this up
0:58where my mouse pointer is right now, where it says saved.
1:01If I just make any simple change to this,
1:03watch how long it takes for it to save this document.
1:06I don't actually have to click the Save button.
1:08It just does it automatically when I store Microsoft Office
1:12documents, and I'm also using OneDrive,
1:15which is Microsoft's Cloud solution for storage.
1:19So watch, if I just type something in here,
1:21watch how soon it says it's saving it.
1:23Usually it happens faster than this.
1:25And now it's making a liar out of me.
1:27Finally, it took like eight or nine seconds.
1:29Usually, that just happens almost instantly.
1:31I'm OK with eight or nine seconds.
1:33And it's also the fact that it saves it as I go.
1:37You might get excited working on something
1:39and you might have been working on it for an hour
1:40and forgot to save any of it.
1:41And then it crashes or your computer blows up
1:44or the power goes out or something like that.
1:46Well now you've lost it, all right.
1:47Not now, not when we have OneDrive,
1:50which is kind of a solution because I
1:51don't have to think of hitting that Save button all the time.
1:55It just doesn't for me, both locally and in OneDrive.
1:59And in fact, let me just close this.
2:02Here it is.
2:02I'm just going here to office.com.
2:05There up at the top, you see that.
2:07And once you log in then you have access
2:10to all of your documents right here.
2:13You can see I've got what is that OneNote, PowerPoint,
2:16Excel, stuff like that.
2:17Here's that slideshow were just working with.
2:19I can open that.
2:20And let's say that I even forgot it or something like
2:23that, I left it at home and I went to make a presentation,
2:25all I need is a tablet, some device,
2:29and I can just connect to my cloud account
2:32and I have this slide presentation right here.
2:34And I can start to present this right now.
2:36And you can see all the rest that I've got here.
2:38Again, the last slide that I showed and all of that.
2:41Now the next thing that sometimes people
2:42are concerned about is they want to know exactly
2:45where their data is stored.
2:46Well, you're probably never going
2:47to know that exactly, especially down to the last hard drive
2:50or something like that.
2:51You can know in general terms though.
2:54For example, you don't have to memorize this
2:56because you might not go here in your normal administration
2:59for Microsoft 365.
3:01But it doesn't hurt to know about it.
3:02It's at admin.microsoft.com.
3:05Once I log in with the privileged account here,
3:08then I can go down here to Settings.
3:10And look at this.
3:11If I go to org settings, which is where I am right now,
3:14then I could go into--
3:15what is it?
3:15Organization profile.
3:17And it tells me where some of my data is stored.
3:19Look right there, data location.
3:21And it says right there as part of our transparency principles,
3:25we publish location where Microsoft stores your customer
3:29data.
3:29Where is it stored?
3:30In the United States of America.
3:33Thank you for that level of transparency, Microsoft.
3:36What does that mean?
3:37East Coast, West Coast, Kentucky?
3:39Is it Hawaii, Alaska?
3:41Who knows.
3:42But it's OK.
3:44I'm all right with it for myself because for the Microsoft 365
3:48kind of data, it could be stored anywhere in the United States
3:51those particular items.
3:52There are some things, by the way, a lot of other things,
3:55really, that you can specify from a high level
3:59as an administrator.
4:00I can say when I first set up my Azure tenant where I'm located
4:03or where I want the data to be.
4:05If I create something like a virtual machine, which we'll
4:08look at a little bit later on, that virtual machine,
4:10I can say I want that to be stored
4:12in the Eastern part of the United States,
4:14in the Western part of the United States, in South Africa.
4:18You can pick and choose those things.
4:20But as a general rule Microsoft does a great job
4:23of knowing where you are and localizing
4:26the data as best they can.
4:29And then let me just give you another quick example
4:31of that same thing.
4:32Here you can see my Windows 11 desktop.
4:35I just installed this, might have been a couple of weeks ago
4:38or something like that.
4:39And I haven't really done a lot with it.
4:41But you can see here that I have gotten Microsoft
4:43Office installed here.
4:44You can see there's links or shortcuts here for Word, Excel,
4:46PowerPoint, the whole thing.
4:48I can launch those if I want to right here.
4:50The thing is this installation of Windows 11
4:54does not actually exist in my office.
4:56I work in a home office.
4:58It doesn't exist on my hard drive,
4:59on my computer that's right down here underneath my desk,
5:02doesn't exist there.
5:04Where does it exist?
5:05At this IP address.
5:06So you can see right up here.
5:07I'm actually using a remote desktop to connect to this.
5:10It's 20.106.73.65.
5:13I do happen to know that's in the West US West three data
5:18center from Microsoft, which is probably
5:2030 or 40 miles to the West of me, Southwest of me.
5:22And the reason why I know it's there
5:24is because I told it to create it there when I first
5:27created this virtual machine.
5:29But this, again, shows some of the benefit of using the cloud.
5:33What if I worked for a pretty poor school
5:35district and sadly many school districts are very poor.
5:38And we had to buy a bunch of used computers for our staff,
5:43they barely run Windows 10.
5:45And they're maxed out on memory, the motherboards
5:49won't take anymore.
5:49They got two gigabytes of memory and the bare minimum hard drive
5:53space, a very basic processor.
5:56They don't have other things that you need for an upgrade
5:59like to Windows 11.
6:00So Windows 11 would require at least a dual core
6:03processor or at least 4 gigs of RAM,
6:05a certain amount of hard disk space,
6:07can't remember off the top of my head how much.
6:09But it needs more hard drive space.
6:11Regardless, the point I'm making there is maybe
6:13those old machines don't have things
6:14like that or a TPM, Trusted Platform Module, which you also
6:17need for Windows 11.
6:19So that poor school district, if it turns out
6:21that for maybe they have an application that
6:23needs to run with Windows 11, we just
6:25bought all of these computers used,
6:27we used every last penny we had and now we
6:30can't install Windows 11.
6:32And we really need to have it.
6:34I guess it's time to have a bake sale.
6:36So what are they going to do?
6:37Well, what they could do is exactly what you're
6:39seeing me do here, this installation of Windows 11,
6:42I could be running that on a really old crusty installation
6:46of Windows 8, Windows 10.
6:48I could be running it on barely enough memory or anything
6:51like that, just enough to run that host operating system is
6:54what we call it.
6:55And I'm remotely connecting over the network
6:57over to Microsoft's data center to open this up.
7:00When I click on the Start menu, that's
7:02not happening on my computer, that's
7:03happening whatever it is.
7:0540 miles away from me right now.
7:07But I can see it all right here.
7:09And I can interoperate with just about everything here
7:12in this remote connection the same is if I were actually
7:16using this as an installed operating
7:17system on my local hard drive under my disk right now.
7:20And as I minimize this, this is my actual desktop right here.
7:23That's my actual physical desktop
7:26that appears on my own drive right here.
7:29Now then the next stuff I'm going to show you
7:30here is not stuff you have to memorize again by any means.
7:33I just want you to get again, the concept, the scope,
7:37the advantages of how all of this works.
7:39It's actually very cool.
7:40So here we have things like availability zones.
7:43When you get into higher levels of Microsoft Cloud
7:45and you work with Azure, for example,
7:48you will need to have certain critical company
7:51infrastructure, certain critical company
7:53applications, databases, file storage all that kind of stuff
7:57on one of Microsoft's data centers.
7:59Maybe it's this right here, which would be one or more data
8:01centers.
8:02They might be two or three data centers
8:04that are linked together over very high speed connectivity.
8:07And they're probably not too far away geographically speaking.
8:11Well, if that whole region goes down
8:13because of an earthquake or something like that
8:17or a natural disaster or a zombie apocalypse,
8:20well, guess what?
8:21We have all of our data that could still
8:23be available in at least one or two other zones
8:26that we see right here.
8:27And these might be geographically further away.
8:30This might be in Phoenix.
8:31This might be, I think there's another data center in the Los
8:34Angeles area.
8:35There's another one in I guess Washington State.
8:37So we can separate those out so that they're also
8:40further apart geographically speaking so that they can also
8:44escape a local natural disaster or something like that.
8:47And if it's something that did affect the whole West
8:51Coast, for example, or the whole west region,
8:53we could even have our geography set
8:55up so that we have a disaster recovery site in the Eastern
8:58United States.
9:00All of this stuff, by the way, my data when I save it maybe
9:04to this location or something, it's
9:06milliseconds, before it's stored and replicated
9:10to other locations when I configure it that way.
9:12You can see here, I don't know if it's too small to read
9:14or not, but there's fiber that connects a lot
9:16of these availability zones.
9:19Fiber is extremely, extremely fast.
9:21So again, that's just to give you the concept.
9:23Here also is a website that I'm going to show you right up here
9:25at the top.
9:26You can Google for that if you want to.
9:28It's not a Microsoft site.
9:29But I think it's pretty cool.
9:30And you can just click and drag around here and Zoom
9:33in on your various regions.
9:35So for example, here I am in Phoenix.
9:37Microsoft is not 100% transparent about all
9:40of their data centers.
9:42Some of them, they're deliberately kind of sly about
9:45because they are government locations.
9:47For example, I found one in some deep searches
9:51in Nevada that's a government site.
9:53There's also another one actually just
9:55North of Phoenix here, I think it might be in Camp Verde
9:57right up here, doesn't show up on this map, that's
10:00a Department of Defense server up there.
10:02Again, for obvious reasons, they try
10:04not to be very transparent about those.
10:06They want to keep it a secret.
10:07I don't know what happened to my pointer here.
10:09It looks like it got barbecued or something like that.
10:12But anyway, I just want to show you this website,
10:14infrastructuremap.microsoft.com right up here.
10:18This is actually kind of interesting as well.
10:20Again, you don't have to memorize everything you
10:21see here or anything like that.
10:22This is for extra credit, if you will.
10:24Just to get an idea of how all this works out
10:28geographically speaking.
10:29So I could click down here, for example, to explore the globe.
10:33Down here it says you can even take a tour of Azure space,
10:35they have stuff in space that's going on right now.
10:37Anyway, let me Zoom in here.
10:39See West US three, that's where most of my data is stored.
10:43And sure enough, there's the skyline here in Phoenix.
10:45And I can click on Learn More about that particular location
10:48if I want.
10:49Also down here at the bottom, this is cool.
10:51I would recommend you do this as well, just for giggles.
10:53Take a virtual tour of a Microsoft data center.
10:57And I'm not going to do all of this
10:58because you can do this yourself,
11:00but you can even enter through the lobby here.
11:02I'm going to explore this lobby, shows you what it looks like.
11:05It shows you the security that you have to go through.
11:08There's a security checkpoint right there.
11:10You can go into their ops center, their operations room.
11:12As we explore this, you can see they
11:14have lots of colorful pie charts and graphs up on the wall.
11:17Who doesn't want that?
11:18We can go into the server room right here as well.
11:21I had to go to the mechanical area first before I got here.
11:23But we can see a little bit about how this looks.
11:26We can look at it a little bit more
11:27at Microsoft's server blades.
11:29These are the actual servers.
11:30We can click and drag through these.
11:32This one has a bunch of disks in it.
11:33That's what JBOD means, just a bunch of disks.
11:36That's one example of a blade.
11:38Here's another one here.
11:39This one is a compute blade.
11:41So it's going to have processors and memory on it.
11:43By the way, just as a quick note,
11:45I found this out when I did a tour of Microsoft's data
11:47center.
11:48The leader of the tour said that Microsoft doesn't buy any
11:51of their servers off the shelf.
11:52They custom design their servers.
11:55And then they contract out whoever Dell, HP, Lenovo,
12:00I think they named another company too,
12:02which I can't remember right now,
12:03but they contract those out and they custom
12:05build those for Microsoft.
12:07Anyway, that stuff that I saved, my PowerPoint presentation,
12:11it might be on one of these disks in this JBOD blade.
12:14But that's kind of fun to go through.
12:16Also I'll just refer you to this as well.
12:18This is a YouTube location here.
12:20You can make note of that URL, or you
12:22can Google for "Story Labs 360 Inside a Microsoft Server Room"
12:26here.
12:26And this actually is pretty cool as well.
12:28I don't want to play the whole thing.
12:30Once you scan ahead through here,
12:32I'm just going to show you what the inside might look like.
12:34These are all the blades that they have.
12:36You can see they have artificial intelligence, machine learning,
12:38compute blades, this stuff's all pretty cool.
12:41And then as I've said before, Microsoft
12:43is not the only provider of cloud services.
12:45Here we have Google.
12:46They've made available a gallery, photo
12:48gallery of their data centers here.
12:50They are a little more transparent than Microsoft
12:52can be on this sometimes.
12:53But wow, look at this.
12:54These things are beautiful.
12:56Microsoft doesn't put much effort
12:58into making them as beautiful as these,
12:59but hey, they get the job done, right?
13:01I guess that's the most important part.
13:02But they have LED lighting in Google's data centers.
13:05And they will change color depending upon their condition.
13:08So I'm not sure what all their color scheme is, but I'm
13:10assuming if something turned red in here, that would be maybe
13:13overheating or some other kind of a problem that
13:16might be occurring in that particular data center.
13:19But there you have it.
13:20I just wanted to expand again, the scope of what we're talking
13:23about when we're talking about the cloud,
13:25where our data is stored, where maybe even our operating system
13:29is stored and how available it is to us.
13:31I hope this has been informative for you.
13:33I'd like to thank you for viewing.
Leverage Economies of Scale
0:00[MUSIC PLAYING]
0:06My wife owns a furniture store.
0:08And they refurbish furniture.
0:10Old furniture, and make it look really fashionable and new,
0:12and it looks great and everything.
0:14But part of the job there is, they
0:16have to actually use a lot of paper towels for things.
0:19For cleaning up old furniture.
0:20For all kinds of things.
0:21Putting on different varnishes, I guess.
0:23I don't know what they do.
0:24Anyway, I don't get at all.
0:25It's way out of my wheelhouse.
0:28But one of the things she asked me for was--
0:31I told her, I said, I'm going by the store,
0:32do you want me to pick something up for you?
0:34And she said, yes, I need paper towels.
0:36So I could get this.
0:39It's $5.48 for these two roles, is what it amounts to.
0:44And it says $0.03 each.
0:45I don't know if that's for each little section or whatever.
0:47But you get the idea, right?
0:48That's how much it costs.
0:50And then take a look at this one.
0:51If I would buy more at once in this economy of scale,
0:55is what this is.
0:56Look.
0:56Now, I've got $0.02 each instead of $0.03 each.
1:01So it's only 2/3 of the expense, is if I go this way.
1:05Now, you might be asking, what does all of this
1:07have to do with a server?
1:09Well, economy of scale, still.
1:12So for example, you see Microsoft.
1:14When they set up a data center, they're
1:17going to buy lots of acres of land.
1:19The one that's near me, about 40 miles away,
1:22I think there's, like, 270 acres or something like
1:24that they bought.
1:25So they're going to get lower prices for everything, starting
1:28with the land.
1:28They get more incentives from local governments
1:31to build there, because they want the jobs that it brings,
1:33and the other resources that it brings.
1:35A lot of political talking points possibly there.
1:37But it's all there.
1:38And Microsoft is going to get lower costs because
1:42of those sorts of things.
1:43Then when it comes to the actual hardware that they buy,
1:46they're going to get lower prices on things
1:47such as, oh, the servers themselves.
1:49They have their servers custom made,
1:52but they'll still probably get them at a pretty cut rate
1:54compared to if we were trying to buy a server of the same type,
1:58because they're buying hundreds, if not thousands
2:01of those servers.
2:02I might need two or three servers,
2:04depending on the size of my business.
2:07How about hard drives?
2:08Just the components themselves.
2:10There was a data center on the West Coast--
2:12this is a few years back--
2:14that someone was telling me about.
2:16They had a catastrophic cooling problem.
2:18The inside of that data center got up to,
2:20if I remember right, 140 degrees,
2:23and ruined a lot of equipment, starting, really,
2:25with the hard drives.
2:27A lot of the hard drives failed.
2:28By the way, when I took tour of Microsoft's data center
2:31about a month ago, the leader of the tour
2:34was asked the question, how many hard drive
2:35failures do you have per day?
2:37And he said hundreds of failures.
2:40And he was thinking of a specific data center.
2:42So in one data center, hundreds of hard drive failures per day.
2:45But anyway, if you have a bunch of hard drives
2:47fail, like in that disaster I told you about,
2:49or if you're Microsoft, whatever--
2:51if you're buying lots of hard drives,
2:54you're going to get a lot cheaper deal per hard drive
2:57than when we buy them 5, 10 at a time.
3:00We're paying closer to a retail expense.
3:03How about energy costs?
3:04We talked about utilities already,
3:05but maybe energy costs.
3:09Remember, Microsoft is up to 70%,
3:12at the time of this recording-- that's supposed to be a 7.
3:1470% Renewable energy right now.
3:18And presumably, if we subscribe to all the talking
3:22points about renewable energy, it
3:24should wind up being less expensive in the long run
3:26than paying for utility that's delivered from a power company
3:30using conventional methods.
3:32Also, Microsoft can afford to build renewable energy,
3:36solar wind farms, things like that,
3:38that most companies would never do.
3:40So they can afford to invest in it,
3:42which will then in the long run, hopefully, save them money
3:44as well.
3:45Well, we can also benefit from that
3:47if we're using any of their services.
3:48And you get the idea of the rest of it.
3:50CPU, the cost of their land.
3:52All the rest of it is going to be less for Microsoft
3:55than it would be for you or me.
3:57And all of those things add up to dollars
4:00that then get passed on to us as the customers.
4:03So in the long run, it may actually be cheaper for us,
4:06instead of buying our own servers in certain instances,
4:09and our own storage, to just use Microsoft's.
4:12Because we can just use a slice of all of these things
4:15that we're talking about here, and come out at a great savings
4:19very often.
4:19So economies of scale may be another reason
4:21why many organizations could move to Microsoft Cloud,
4:24and hopefully save some money.
4:26I hope this has been informative for you,
4:28and I'd like to thank you for viewing.
CapEx Vs OpEx
0:00[MUSIC PLAYING]
0:06A big part of most organizations budget is IT.
0:10It's very expensive to run IT.
0:12And so we need to consider ways that we
0:13can save money, or at least, make
0:15our dollars more efficient when it comes
0:17to spending those dollars.
0:18So let's say, for example, that we have a bobblehead company.
0:22You know, those bobbleheads.
0:24A lot of times, you see them for sports figures and all.
0:26They got a big gigantic head on top of a little smaller body,
0:29and it kind of shakes on a spring like this.
0:32That's my best imitation.
0:33Anyway.
0:35What happens is, maybe we are advertising our bobbleheads
0:38for some really famous football players during Super Bowl.
0:41And so during most of the year--
0:43our fiscal year starts in April.
0:45So, April, May, June, all the other months through here.
0:49And then in February, we show our ad during the Super Bowl,
0:53and we put it in print and all kinds of things.
0:56So through February, and probably March,
0:58we're expecting our sales to go like this.
1:01They go this way.
1:02And then all of a sudden in February, they go way up here.
1:06Well, we did the same thing during World Cup
1:10for soccer, which is the other version of football.
1:13It's not as good as American football.
1:15I'm going to start some fights here, aren't I?
1:17Anyway.
1:18So we did the same thing for soccer, with Messi,
1:21and we had some other bobbleheads that we sold.
1:23And it crashed our servers.
1:26And so we told our management, we said,
1:28hey, this year for Super Bowl, we
1:29can't have the same thing that happened with the World Cup.
1:32We've got to get our servers upgraded.
1:34We've got to buy new servers--
1:36at least one new server that can handle the load.
1:38And so this is one of the things that I do.
1:40I like to go to websites like HP, or Dell, or other server
1:42manufacturers, and look at how much servers cost.
1:45Now this is just a middle of the road server.
1:48It's a rack based server from PowerEdge.
1:50And this might be one of the things
1:51we might want to buy to help handle our bobblehead demand.
1:57Look.
1:57The starting price is 10 grand.
1:59Now for those of you that work with servers a lot,
2:01you'll say, yeah, that's pretty cheap.
2:03But for a lot of us, that looks expensive,
2:05at least at the outset.
2:05But look.
2:06I have to add a lot of other stuff to this.
2:08First of all, I have to add an operating system.
2:10I have to add hard drives.
2:12I have to add memory I have to add a processor.
2:15So by the time I get done with it--
2:17I'm not going to show all the details here.
2:19But I've just added a few things, and I'm up at $23,000.
2:23And these can get very, very expensive.
2:26So let's say that I convinced my management to buy this $23,000
2:31server.
2:31I had to buy lots of lunches for people,
2:34and I had to go through the seventh circle of hell
2:37and everything, to be able to get approval
2:39to get this server.
2:40So now we have our $23,000 server.
2:44And it's handling this demand just fine.
2:47It was a success.
2:48We're glad we bought it.
2:49But when it comes back around to April, May, June,
2:53the rest of the year, what's that server doing?
2:55It's just sitting there with this level of demand,
2:58and it's way too much server for the demand
3:01that we have during those months.
3:02It's kind of overkill for those months.
3:04Well, this was what we call a capital expenditure, or CapEx.
3:10So that's where you spend all your money up front.
3:12We had to buy this big, gigantic server.
3:14We spent a lot of money on it.
3:16But if we're not using it, or if it's just
3:19sitting here burning gas, we don't get a refund on it.
3:22We can't call Dell, and say, hey, Dell,
3:24we're only using about 25% of that server you sold me.
3:26So can you send me 75% of the price back.
3:30They're not going to do that.
3:31Also, the value of this will start to trickle down.
3:35Because of depreciation.
3:38You can write some of that off in taxes and stuff.
3:40But it'll trickle down.
3:41And someday, we might even be able to sell it
3:43as a used server, or recycle it.
3:45But it's only going to be a fraction of what we originally
3:48paid for it.
3:49So that's another disadvantage.
3:51Now compare that to something else,
3:52another kind of an expenditure called
3:54an operational expenditures, or an OpEx.
3:57This is what we do when we use something like Azure.
4:00So with Azure, we can say, hey, we're just
4:02going to use the server that we have in-house for now.
4:05But during this peak period of demand,
4:08we're going to add in a virtual machine in Microsoft Azure.
4:13And that virtual machine is going
4:15to be able to handle all of this load.
4:17And then when we're done using that virtual machine,
4:19and our demand comes back down again,
4:21we'll just either stop using the server,
4:24or we can change the sizing of the server.
4:26That's for another day.
4:27But the other thing you can do with this is
4:28can keep that same Azure server all year round if you want,
4:31and it can shrink in terms of its total size and expense
4:37for what you're not using.
4:38And then when it increases in demand like this--
4:41it can scale up or scale out, is what we call it.
4:43And it can add more resources, add more memory, add more CPU,
4:47or add additional servers entirely.
4:49And then of course, your expense goes up,
4:51but then you've also kept up with the demand.
4:53But during the off season, so to speak, over here,
4:56it's not just burning gas and costing you
4:58money unnecessarily, or at least as much.
5:00It's much, much more efficient.
5:02So operational expenses, it's kind of like leasing something.
5:07You don't actually pave the whole expense of the item.
5:10If you lease a car, you don't spend $80,000 on the car.
5:14You pay some each month, and it's not
5:17going to add up to $80,000 at the end of your lease contract.
5:20Similarly, we're just paying for what
5:22we use with Azure and the resources that it offers.
5:25I hope this has been informative for you,
5:27and I'd like to thank you for viewing.
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