Pricing a VM as an SMB share

I posted a recent article on pricing a 1TB file share using Azure that you can find here:

Clarification on Azure SMB file share transactions

The estimated cost for that was AU$115.35 per month.

Let’s repeat the exercise but this time price up the share in Azure using a virtual machine (VM) for storage.

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I’m going to use the DS1_V2 machine as my base for two reasons. Firstly, it is low power, which is what we want if we are simply using it as a file share and secondly this machine supports premium storage, which I’ll also look at pricing as an option.

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If I now price this using the Azure pricing calculator (and remembering that a DS2_V2 is the same as a D1_V2 in the calculator) I come up with an estimate of AU$139.30 per month.

However, this is just for the host machine. I now need to add additional storage of at least 1TB to host the file share.

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You can see when I select basic storage (HDD) and 300,000 (i.e. 3 units) transactions as before, for 1TB of additional storage. This comes to a total of AU$104.36 for storage alone.

The total of the VM and storage here is AU$243.66.

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Now, let’s say I select premium storage (SSD) for this additional 1TB rather than basic.

The first thing you’ll notice is that you are no longer charged for transactions, just a flat storage cost of AU$172.17.

I need to select the P30 to give me at least 1TB of storage. I could of course use multiple disks striped together but one big disk works out cheaper anyway. Thus, the total cost of the VM + premium storage is AU$311.47 per month. This is about a 28% premium over the basic storage option above.

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So let’s now say I want to go with the cheapest VM (host) available. That would be an A0 machine as shown above. However, choosing an A0 machine now means I don’t have premium storage available as an option.

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That means my additional storage option is back to AU$104.36, giving me a total cost of AU$131.84. Which is about a 50% discount on the basic storage option and 58% discount on the premium storage option.

So in terms of pure cost, Azure SMB file shares wins out at AU$115.34 while the cheapest VM share option is AU$131.34. However, in terms of flexibility the VM is probably the winner because:

1. You can potentially run other processes on the VM.

2. The VM supports low level NTFS permissions inside the share which the Azure file solution currently doesn’t.

3. It is easy to upgrade the base VM and add more storage if required.

But wait, there is still something else that hasn’t yet been considered here. How do you access the share?

With an Azure SMB File share you simply map a drive on any modern machine by running a command but how would an end user map a drive with a VM?

For an end user to easily map a drive letter to an Azure VM they are typically going to need to have in place a site to site VPN from on premises to Azure.

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As you can see from above the cost of a standard Azure VPN gateway is AU$180.05 per month. There is also the need to factor transfers out of Azure (you don’t pay for data into Azure, only out from). Let’s say that half of our data (i.e. 500GB) is transferred per month out of Azure. That leaves the total cost of the VPN gateway to be AU$267.06.

The inclusion of the VPN gateway now inflates our original DS1_V2 scenario with basic storage to a cost of AU$510.71 which is much more expensive than the initial Azure SMB file share option considered previously. However again, a VPN to Azure is going to provide a huge amount of flexibility when it comes to the infrastructure going forward.

So what this means is that as a pure stand alone file share solution the Azure SMB file share option is going to be typically the most cost effective. However, in terms of an overall shift of on premises infrastructure to the cloud, the VM share option is going to provide the flexibility and growth capability that you are going to want.

Which should you choose? In reality, both. Why? The scenario for most SMB customers is a desire to move the majority, if not all of their infrastructure, to the cloud. However they are not going to do it all immediately. It will be a process undertaken over time. Thus, an Azure SMB file share makes good sense initially but in the long run a VM share solution is probably the most effective solution.

The great thing is that because everything is Azure you can set all of this up under one tenant and add and remove components as you need over time and only be billed for what you consume. That’s the real flexibility here. Azure gives you a range of tools that you can use to solve just about any infrastructure challenge. That’s why it needs to be part of your toolbox!

Yes, there are lot more ‘if’s and but’s’ than if you simply went out and purchased an on premises NAS for storage but that doesn’t give you the flexibility for what is ultimately the end game of migrating infrastructure to the cloud now does it?

We live in a world where everyone wants more options. SMB resellers also need to get comfortable with the fact that there is really no end to a ‘migration’ because it simply continues on in other forms. That should be music to IT resellers ears as it means growing demand by customers for assistance and the opportunity to generate more revenue.

Yes, the world may be different and pricing may be a little more involved than it used to be but there is no beating the flexibility that is now available thanks to Azure.

What is the correct price?

One of major pain points for SMB resellers is pricing Azure solutions. Here’s an example of why.

Let’s say that I want to price a DS1_V2 machine.

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In this case I’ve chosen a DS1_V2 machine for a couple of reasons. Firstly, it is a low power machine, and secondly, the DS machines allow the attachment of premium storage.

Now as you can see from the estimate from inside the Azure portal above the price of this machine alone comes to $79.60 per month.

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Interestingly, if I now go to the Azure price calculator I don’t find an option for a DS1_V2 machine, so confusion point number one. It turns out that I need to use the pricing for a D1_V2 which is the same as the pricing for a DS1_V2 (but of course the DS1_V2 permits premium storage while the D1_V2 doesn’t).

Confusion point number two is that the price for a D1_V2 (which is the same as my desired DS1_V2) is listed as $139.30 per month. So what’s the right estimate here? Sure, the difference in price is only about $60 but as a percentage the difference is about 75% which is significant.

Let’s try another machine.

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The difference in a D2_V2 is $119.40 or again a 75% difference.

Let’s try another family of machines.

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The difference in an A1 machine is $69.17 or 182% difference!

So clearly I’m missing something here and would appreciate someone setting me straight as to:

1. Why the pricing between the portal and calculator is different and

2. Which one I should be using to get a correct estimate of cost?

I need to know.

**** Here’s the answer:

http://windowsitpro.com/azure/azure-msdn-virtual-machine-price-discount

Because I have Azure via an MSDN subscription I received additional discounts on VM usage per:

https://azure.microsoft.com/en-us/pricing/member-offers/msdn-benefits-details/

Low dev/test rates help you stretch your credit farther

Use the Microsoft software included with your Visual Studio subscription on Azure Virtual Machines for dev/test at no extra charge—you’ll just pay the Linux rate for VMs you run, even VMs with SQL Server, SharePoint Server, or other software that is normally billed at a higher rate. Upload custom virtual machine images yourself or use one of our pre-configured images from the Azure Gallery.

In addition to the low dev/test rates on VMs, you also get low rates on Cloud Services, HDInsight, and Web Apps.

So now I know. My oversight!

So in summary the Azure pricing calculator gives you the RRP without any discounts while the portal gives your effective costs taking into account any discounts you receive on that tenant alone! Thus, for pricing a solution for a customer, always use the calculator pricing.

CIAOPS Online training special offer

With 2016 drawing to a close, I thought I’d do a special offer on the Complete Course Catalogue for my online training academy you can find at:

www.ciaopsacademy.com

The Complete Course Catalogue is an annual subscription that gives you access to every course I have created (including courses on Azure, Office 365, Yammer, SharePoint and more) and will create. Thus, if you sign up today you get access to the 25+ courses I have already created PLUS you’ll also get access to all the new courses I have in the works for 2017.

So the deal until December 25 and for a strictly limited number of takers is:

10% discount off the first year’s subscription ($60 value)

– a 1 hour remote consulting call with me that you can use for training, business mentoring or the like ($275 value)

– access to the private CIAOPS Facebook tech community to discuss and ask your questions in and share with other members ($120 value)

– free Getting Started With Skype for Business eBook ($10 value)

– free Beyond the Basics with SharePoint Online eBook ($10 value)

That’s over $450 in value plus what you’ll get from the online courses that include video lessons, downloadable notes, links and more.

As I said, this offer is strictly limited until the 25th of December 2016 or until sold out, so don’t delay. Sign up today to take advantage of this strictly limited learning opportunity.

To take advantage of this deal use the code MERRY2016 at checkout or click this link:

http://ciaops-academy.teachable.com/p/complete-catalogue/?product_id=153214&coupon_code=MERRY2016

I look forward to seeing you in the CIAOPS Academy and Facebook Tech group.

Software will eat the world

This is the fifth part of my presentation “Making money from the cloud”. You can find the full slides at:

https://doc.co/LyrxvF/qcihGm

and the previous parts are at:

We live in exponential times

Consider the following

Major Trends

Macro Trends

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If you consider all the trends in the changing IT environment the next questions that results is ‘Where should I invest for the future?’. Luckily, the answer to that is pretty simple. Software.

Marc Andreessen wrote an article back in 2009 entitled:

Why Software Is Easting the World

that I encourage everyone to read. In essence, it is saying the the IT world of the future is all about software. Every business, whether they are in IT or not will effectively become a software company given the amount of data it needs to analyse. Software provides automation, reducing costs. Software provides efficiency and a competitive edge, etc., etc..

Some other articles that echo this are:

Hardware is sexy, but it’s software that matters

from Seth Godin

Software is still eating the world

from Techcrunch

How robots, drones and artificial intelligence will change everything

from the Financial Post.

Those who only have on premises IT skill sets are fast being left behind by those who have embraced the world of IaaS (Infrastructure as a Service) thanks to Azure, AWS and the like. However, the journey does not cease there. It will continue from IaaS to Platform as a Service (PaaS) and to Software as a Service (SaaS).

The reasons for retaining a complex system such as an email server on premises are pretty minute these days in the face of the pricing of global services like Office 365 Exchange Online. It makes more sense for the creator of something like Exchange to set it up, manage and maintain the system then sell it as a demand based service per user per month. Global corporations like Microsoft can get economies of scale that no one else really can, effectively making many computing services simply a utility much like electricity.

That trend means there is less need for Exchange engineers and technicians on premises. What happens to these people? Simple. If they don’t skill up they are going to struggle big time.

IT Professionals increasing face an environment that is all about DevOps. That is the intersection between being a developer and managing operations of computing resources. However, the key skill for that role is clear. It is software and more so coding. If you can’t code to some extent going forward you are not going to have a skill set sought by employers or businesses.

The classic example I see in the Microsoft eco-system is the lack of skills IT Professionals have with basic tools such as PowerShell. You should be using PowerShell to manage your on premises networks TODAY. You should be using PowerShell to manage Office 365 TODAY. You should be using PowerShell to manage Azure TODAY. Write once, run many should be the mantra of today’s IT Professionals but sadly it isn’t. The excuse is normally that ‘I don’t have the time to learn PowerShell’ to which my response is ‘your problem is NOT a time issue, it is a priority issue’.

The world of DevOps doesn’t mean you have to spend your whole day writing code or diving deep into APIs. What is does however mean is that you need to have a balance of skills in the software world, whether that is PowerShell, JSON, Visual Studio, or whatever. Software skills are mandatory for the future of the IT industry because that is the basis on which our future is built on. Software.

Just about every system we interact with today is done via the web. HTML, CSS, Javascript, etc are again key technologies I see few IT Professionals actually possessing or seeking to develop. Even automation tools as simple as If This Then That, Zapier, Microsoft Flow, etc are things most IT Professionals have NEVER seen, let alone used. These tools are the future of the IT Professional and a key skill that must be acquired because they are all the solution of some business problems simply created by connecting available software services together. You don’t need to writing C sharp code to be considered a developer by any means!

The great thing about software is that is all about the creativity of the human mind. That’s why software skills will always be in demand, because it is hard for a ‘machine’ to be artistic. Good software is an art and there is a shortage of good artists because so many have failed to update their skills and embrace the new world of software. Those that have now have a vehicle they could potentially use to develop mobile applications that could be sold to just about everyone on the planet with a mobile device, all without stepping outside their office. You can’t do that with hardware!

The take away here is that our world today and increasingly of tomorrow, is going to be dominated by software. If you can’t do software then you are going to be consigned to an unskilled role that it isn’t even worth a machine doing. There has never therefore been a better time than now to invest in software skills. Learn PowerShell. Learn how to deploy Azure JSON templates via scripts. Go and develop a mobile app using Microsoft PowerApps and Flow for starters. There has never been more opportunity for those who are willing to embrace the tenant that ‘Software is eating the world’ and a greater warning for those who ignore it.

Need to Know podcast–Episode 123

Marc is joined by Daniel Apps to talk all about the differences between the Microsoft monitoring products of System Center Operations Management and Operations Management Suite. Which is better? Is OMS replacing SCOM? Listen in for insight from Daniel Apps.

Marc and I also cover the latest Microsoft Cloud news in what will be out finale for 2016. Merry Christmas to all our listeners. Thanks for tuning in. We’ll see you all again in 2017.

You can listen to this episode directly at:

https://ciaops.podbean.com/e/episode-123-scom-vs-oms/

or on Soundcloud here:

 

or subscribe via iTunes at:

https://itunes.apple.com/au/podcast/ciaops-need-to-know-podcasts/id406891445?mt=2

The podcast is also available on Stitcher at:

http://www.stitcher.com/podcast/ciaops/need-to-know-podcast?refid=stpr

Don’t forget to give the show a rating as well as send us any feedback or suggestions you may have for the show.

Resources

@daniel_apps

@marckean

@directorcia

Azure news from Marc

Calendar help preview

SharePoint smart filters 

Need to Know Podcast–Episode 122

Marc and I run through all the latest cloud news in the wind down to the holiday season. Still plenty of things happening, especially around Azure so listen in for the latest.

You can listen to this episode directly at:

http://ciaops.podbean.com/e/episode-122-cloud-news/

or subscribe via iTunes at:

https://itunes.apple.com/au/podcast/ciaops-need-to-know-podcasts/id406891445?mt=2

The podcast is also available on Stitcher at:

http://www.stitcher.com/podcast/ciaops/need-to-know-podcast?refid=stpr

Don’t forget to give the show a rating as well as send us any feedback or suggestions you may have for the show.

Resources

@marckean

@directorcia

New Skype for Business Mac Client

Azure AD PAss through authentication

New capabilities for EMS

Clarification on Azure SMB file share transactions

I have previously written about the flexibility of Azure SMB file shares:

Creating an SMB file share

Azure SMB file shares – price and performance

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Upon revisiting the Azure price calculator I now note there are three options when it comes to calculating operations costs on these file shares.

Each operation consists of units of 10,000 transactions. However, my questions was what actually constitutes a transaction? If I copy 10,001 files into an Azure SMB file share, is that 10,001 transactions or just one because it is a bulk operation?

So the answer (as I understand it) is that ANY file operation constitutes a transaction. For example, copy 10,001 file to Azure SMB file share = 10,001 transactions (cost = 2 operations = $ 0.0382 (put operation)). For example, do a directory listing of those 10,001 files once they have been copied to the Azure SMB file share = 10,001 transactions (cost = 2 operations = $ 0.0382 (list operation)). The only thing that won’t cost you a transaction is a delete operation.

With this in mind let’s try and cost out a generalised scenario. Let’s say you set up a 1TB Azure SMB file share for 50 users. That will cost you A$114.78 in storage. Now let’s say that your 50 users work on an average of 50 files a day. This means, your business is working with 2,500 files per day. Let’s now say that on average there are 4 transactions per file (list, open, put, list) per day. Thus, we now have an average of 10,000 transactions across your organisation for this Azure SMB file share per day. Thus, that means we get about 300,000 transactions per month on average. So this means we get 300,000 divided by 10,000 operations per month = 30. The total cost of these transactions over the month is then 30 x $ 0.0191 = A$0.57.

That means the cost of such an Azure SMB file share is: storage + operations = A$114.78 + (300,000/10,000) x A$0.0191 = A$114.78 + A$0.57 = A$115.35 per month. Remember, that this price also EXCLUDES any bandwidth costs to an on premises location.

That equates to about A$3.85 per month per user cost for such Azure SMB file storage.

The hardest thing about determining such pricing is clearly the number of operations (i.e. number of 10,000 transactions) that will take place on the data in the Azure SMB file share. However, what is important to remember here is that if you have a very active Azure SMB file share with lost of users ensure you need to keep a close eye on your operations (i.e. file transaction) costs because they can become quite expensive if you have lots and lots of them. For example, if we say we got 1,000 times more transactions a month (i.e. 300 million per month) that equates to 30,000 operations per month (i.e. 300,000,000/10,000), which is A$573 in transaction costs alone. Suddenly the Azure SMB file share option becomes a tad expensive. 

Azure SMB file shares are a great solution but like everything in Azure they may not be appropriate in all situations. In the case of high volume file transactions perhaps an Azure VM with a traditional file share would be more cost effective. Of course, there are other cost factors to consider with an Azure VM including the compute monthly cost, maintenance, etc. To provide a true comparison you need to ensure you consider all the relevant costs.

A future blog post will compare the costs of doing a file share from a traditional Azure VM so that you have a comparison to what’s been discussed here. So stay tuned for more on that real soon.

Need to Know Podcast–Episode 121

After getting through all the cloud news, Marc and I have a chat to an old and frequent podcast guest, Technical Solution Specialist, Enterprise Mobility and Security, Jeff Alexander. We hope this will be the first in a series focused on the Enterprise Mobility and Security Suite from Microsoft. We kick off the discussions with Jeff telling us all about Azure AD and role that it plays both on premises and in the cloud. We dig deep in how Azure AD is being used to secure the growth of mobile devices and the demands of users to have full access to their information at all times.

You can listen to this episode directly at:

http://ciaops.podbean.com/e/episode-121-jeff-alexander/

or on Soundcloud here:

or subscribe via iTunes at:

https://itunes.apple.com/au/podcast/ciaops-need-to-know-podcasts/id406891445?mt=2

The podcast is also available on Stitcher at:

http://www.stitcher.com/podcast/ciaops/need-to-know-podcast?refid=stpr

Don’t forget to give the show a rating as well as send us any feedback or suggestions you may have for the show.

Resources

@marckean

@directorcia

@jeffa36

Microsoft Enterprise Mobility and Security Suite

EMS blog

Start and Stop Azure VM’s using autmation

Announcing auto VM shutdown from the portal

Azure news from Marc

Office 365 group guest access available to all tenants