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2. This presentation provides a hypothetical virtualization scenario, using figures calculated by the Microsoft Integrated Virtualization Calculator.Microsoft Integrated Virtualization Calculator The deck analyses the potential opportunity and the benefits provided by Microsoft’s virtualization solution. The next step after this presentation is to agree to walk through the Integrated Virtualization Calculator with your customer to develop a tailored case study of the benefits of Microsoft’s Virtualization solution. Notes to the presenter:

3. 33 Virtualization by Numbers: The Business Case Spotlight on Cost

4. Agenda The Theory Hypothetical Company Profile OpportunityApproachSolutionValue Compelling Economic Advantages Proposed The Practice Case Studies Next Steps

5. The Company – Contoso Aero Enterprise Profile Mid size Aerospace and Defense business operating in the United States with 3,000 employees in 3 primary (suburban) locations Business Problem Need to improve availability and quality of disaster recovery systems to meet requirements of the new set of government contracts without driving cost of IT operations up. No projects with Payback Period over 12 months will be approved by the CFO Software budget of $500K, Project budget $1M IT environment 182 production servers and 82 Disaster Recovery servers in DC supporting 3 manufacturing locations growing at 10% annual rate (4 year server life cycle) supporting over 180 applications 55

6. The Opportunity Consolidation: currently runs at under 10% CPU utilization on average Disaster Recovery: currently 0.4 DR servers for every Production server ratio High Availability: Currently, no clustering implemented Green: over 60% of peak power usage on idle servers 66

7. Approach Use server consolidation with virtualization to “pay” for High Availability and Disaster Recovery solution 77 As-IsTo-Be Production Server# of Servers Server Type# of Servers Server TypeVMs to Support File / print servers 1002 CPU Consolidate 182 production servers and 82 Disaster Recovery servers to 57 servers, a 4.6:1 consolidation ratio E-mail servers 254 CPU Application servers 202 CPU Database servers 124 CPU Web servers 252 CPU Total Production 1822/4 CPU444CPU182 DR servers 822CPU134CPU182 Total 264602 CPUs in total 574CPU364

8. Benefit Overview Three year net benefits$4,684,753 Three year investment in Microsoft Virtualization$717,653 Return on Investment (Net Benefits / Total Investment)553% NPV Savings$3,719,792 Payback Period (in months)6 1.Production server consolidation savings are supporting IT services improvements in HA and DR 2.Payback and Investment requirements met 3.HA and DR contributes to the ROI 4.Power and CO2 emission impact completes the picture Three Year Benefit AnalysisBefore CostsAfter CostsDifference% Difference Production Server Consolidation and Management Benefits $6,826,946$2,869,405$3,957,54158.0% Production Server Consolidation Green IT Benefits$1,040,672$308,157$732,51570.4% Production Server High Availability Benefits (Indirect) $935,234$236,566$698,66874.7% Production Server Disaster Recovery Benefits (Indirect) $25,693$12,011$13,68253.3% Three year total benefits$8,828,545$3,426,139$5,402,40661.2%

9. Benefits 1: Production Server Consolidation & Management Three year benefit analysis Before Costs After CostsDifference% Difference Existing Server Cost Avoidance$2,889,600$1,432,100$1,457,50050.4% New Server Purchase Cost Avoidance $620,800$340,200$280,60045.2% Networking Savings$275,880$80,370$195,51070.9% Networked Storage Savings$549,480$157,890$391,59071.3% Provisioning Efficiency Savings$56,187$6,914$49,27387.7% Change Management Efficiency Savings $976,732$326,731$650,00166.5% Operations and Administration Efficiency Savings $1,458,267$525,200$933,06764.0% Total$6,826,946$2,869,405$3,957,54158.0%

10. Benefits 2: Production Server Consolidation Green IT Benefits Three year benefit analysis Before Costs After CostsDifference% Difference Power and Cooling Savings$716,919$261,899$455,02063.5% Data Center Space Savings$323,753$46,258$277,49585.7% Total Financial Green Impact$1,040,672$308,157$732,51570.4% Carbon Emissions per Year (in metric tons) 1,4694641,00568.4% Number of Equivalent Cars Carbon Emissions (per year) 2698518468.4% Number of Equivalent Trees to Cover CO2 Emissions (per year) 37,66711,89725,77068.4% Number of Equivalent Homes Carbon Emissions (per year) 1585010868.4%

11. Indirect Benefits Production Server High Availability Three year benefit analysis Before Costs After Costs Difference% Difference Total Downtime Avoidance Benefits$935,234$236,566$698,66874.7% Production Server Disaster Recovery Benefits Three year benefit analysis Before Costs After Costs Difference% Difference Production Server DR Benefits (Indirect)$25,693$12,011$13,68253.3%

12. Investment: To achieve these benefits, the investment in Microsoft is expected to be as follows: Microsoft Virtualization Investment (costs)Total Costs Over Three year Microsoft Integrated Virtualization Licensing Costs$524,283 Production Server Virtualization Professional Services Costs$156,750 Production Server Virtualization Implementation Labor Costs$36,620 Production Server Virtualization Training Costs$0 Three year total costs$717,653 Software Investment Licensing Components: Full WS08 licensing and CALs Full SMSE licensing

13. Competitive Comparison Table Three Year potential net benefit: $4,684,753

14. Case Studies  14

15. Hawaii bank saves money and time by consolidating server environment “One of our goals was to reduce total cost of ownership. By consolidating the server network with Hyper-V, we did lower ownership costs, including hardware, software, and operational expenses.” Rick Shibata, Technology Infrastructure Services Manager, American Savings Bank  Cut hardware costs  Reduced power consumption  Anticipated $30,000 annual savings in server maintenance  Decreased server management and provisioning time  Meeting business needs at lower cost  Implemented Hyper-V TM virtualization technology in Windows Server® 2008  Installed multiple virtual machines on individual physical servers  Will consolidate up to 30 percent of server environment  Growing server network created increased hardware, licensing, and power costs  Mounting time and staff resources to manage server environment  Needed to efficiently manage server-refresh process Solution Business Challenge Results/ Benefits

16. With virtualization, newspaper reduces costs, gains infrastructure flexibility Solution Business Challenge Results/ Benefits Reduced Costs - Consolidated Servers with 10-20 to one ratio Improved Server Utilization Better Disaster Preparedness Infrastructure Flexibility Less Time Provisioning and Maintaining Servers The AJC worked with Microsoft and Dell consultants to implement the Windows Server® 2008 Enterprise operating system with Hyper-V™ technology and Microsoft® System Center Virtual Machine Manager 2008 The newspaper’s IT staff faced critical power and cost problems due to server proliferation Needed a better disaster preparedness solution Needed a more flexible infrastructure “ With Hyper-V, we get four free Windows VM licenses. We can run virtualized Linux. And we can use off-the-shelf or repurposed hardware. This gives us significant flexibility and cost savings.” Brent Register, Client/Server Engineering Manager, The Atlanta Journal-Constitution

17. Hospital uses virtualization to speed rollout of new services and improve uptime Solution Business Challenge Results/ Benefits Faster introduction of new services Higher application availability Deploy 100 servers instead of 400, Saved approximately U.S.$1.5 million in hardware costs Saved $150,000 in additional project-related hardware Use Windows Server® 2008 with Hyper-V™ technology to speed server rollout Use Microsoft® System Center Virtual Machine Manager 2008 to reduce server deployment chores Expand physician and patient-care services Simplify server requisitioning and provisioning Reduce server count Reduce the number of presentation virtualization servers “ We are using Hyper-V to quickly and cost-effectively roll out new services, which makes our hospital a more attractive partner to physicians and other organizations.” Paul Acampora, Manager of Customer Service, Saint Raphael Healthcare System

18. Next Steps Use the Microsoft Integrated Virtualization Calculator to measure the financial benefit of implementing virtualizationMicrosoft Integrated Virtualization Calculator  18