3. Microsoft IT Organization IT business functions Shared services Business process units Ideation to availability Awareness to lead Lead to order Order fulfillment Fulfillment to customer value Corporate functions Application and platform services Site end-user service Information security and risk Infrastructure services Service operations and management IT strategy and governance Business administration Compliance and standards People capability Supplier relationship management

4. 7.9M Lync calls/month 270K SharePoint Sites in the Cloud Employees participate on Yammer each week 90K 140K Users on Office 365 Exchange 300K System Center managed devices 153K Managed Windows 8.1 Systems 1.2M Devices hit the Microsoft network 1.3K+ LOB apps managed by IT 150K Devices sync via EAS 100K + Employees 180K+ end users Simplification efforts reducing app portfolio at 5% per year Simplification efforts reducing app portfolio at 5% per year This includes servers, user PC's and mobile devices This includes servers, user PC's and mobile devices Windows Phone, IOS and Android devices Windows Phone, IOS and Android devices The Microsoft IT Environment 513 Site locations 17K Surface Pro and RT devices on the network 80K Consecutive remote connections 6% LOB apps run in Azure PaaS Presence in over 114 Countries Presence in over 114 Countries Enabling mobility and productivity Enabling mobility and productivity All new development + next gen apps All new development + next gen apps 6k Win 8 Upgrades per day 6k Win 8 Upgrades per day Driving standards for all core PC’s and servers Migrated 3K users per month Migrated 3K users per month 170% Growth in usage YoY 170% Growth in usage YoY Online sites growing 4% On-Prem declining at 25% Online sites growing 4% On-Prem declining at 25% 3% Monthly Lync call volumes growth 3% Monthly Lync call volumes growth Sales force works 60% mobile

5. “I’m inspired by what Microsoft is doing in IT and now I see what’s possible for me.” External Customers Make it a Showcase “I see my business connected, so we can move faster.” Business Stakeholders Accelerate Capabilities ”I’m delighted stuff just works and is a simple experience.” Outcomes End Users Audience Simplify Experience Focus Microsoft IT delights customers, connects the company & inspires the industry Vision Create tomorrow. Deliver today. Mission One Microsoft: Supporting a mobile-first, cloud-first world. IT Strategy

7. Empower every individual and every organization to be able to thrive in this mobile-first, cloud-first world. Our Goal Provides the ability to orchestrate & power mobility with intelligence. Ability to reason over the data and help experiences light up across all devices. Why Cloud for Microsoft? The core of our company - productivity and platform. Intelligence of the cloud = better productivity, info discovery and business process improvements. Brings together end users, developers and IT. Our Unique Contribution The most complete cloud offering. Empowers every business across every industry in every geography. The Microsoft Cloud

8. Cultural Challenges 3 We are using Azure as another on-premise datacenter. IT apps are developed on legacy “scale up”, “always on” design. IaaS is designed for “on-demand”, dynamically scalable, short term usage; not for 24x7 servers Majority of apps do not have automation for their environment builds and test activities Independent of usage, apps keep capacity stockpiled for peak HW need across all environments Current PaaS subscription management creates security, compliance and governance risks Limited re-useable IT and Data services developed in cloud. Drives redundant solutions, higher app development cost and time to market

9. Microsoft IT leads our company’s cloud acceleration program. Microsoft IT collaborates across the company to influence Azure product direction, provide analytics and guidance to speed IT cloud adoption, and share our cloud story with the industry. Microsoft IT Cloud Acceleration Great analytics lead to great decisions. Deploy the best cloud solution the first time. Microsoft IT helps you get it right.

10. Microsoft’s strategy is “cloud first, mobile first.” Microsoft IT: decision engine for the cloud We provide the framework and guidance needed to accelerate cloud migration. Serves as single source of truth on cloud adoption We provide the framework and guidance needed to accelerate cloud migration. Serves as single source of truth on cloud adoption We coordinate the cloud adoption progress across the organization. Initial analysis Remediation recommendations Migration plans Final assessment We coordinate the cloud adoption progress across the organization. Initial analysis Remediation recommendations Migration plans Final assessment We take a data-driven approach to ensure that stakeholders find the right cloud solution for every cloud adoption project. PG Prioritization Optimization We take a data-driven approach to ensure that stakeholders find the right cloud solution for every cloud adoption project. PG Prioritization Optimization

11. Cloud Program IT Shared ServicesIT Business Functions IT Business Process Units ADOPTION DATA, LESSONS LEARNED & SHOWCASES CLOUD ANALYSIS, GUIDANCE DELIVERY & ROADMAPS SERVICE CAPABILITY & IMPROVEMENT CLOUD PATTERNS & GUIDANCE CREATION Enterprise Architecture First & Best Infrastructure Service Providers Azure Product Group Approach for Accelerating Cloud Migrations

12. 3% 90% of Microsoft IT’s 1,100+ production apps meet requirements to move to IaaS or private cloud environments 7% of apps migrated to the PaaS environment 3% will remain on dedicated hardware

14. Microsoft IT and SaaS Providing communication, productivity, and collaboration everywhere

15. Microsoft IT and PaaS/IaaS Building next-generation apps and quickly migrating existing apps

17. High Level Decision Tree Public SaaS Evaluation 1.Business Case 2.Competitive Technology Assessment 3.Privacy and Compliance 1.Integration 2.Performance and Scale 3.Management Public PaaS Evaluation 1.Business Case 2.Competitive Technology Assessment 3.Privacy and Compliance 1.Integration 2.Management 3.Resiliency Public IaaS Evaluation 1.Privacy and Compliance1.Connectivity 2.Integration 3.Performance and Scale Private IaaS Evaluation 1.Availability New Cloud Development

18. Analysis –> Decision Tree Yes No Run Retire *Business justification & cloud adoption roadmap required. Cloud Migration

19. Application Assessment IaaS Migration Roadmap Application Assessment Framework Application Decision Framework Server Technical Assessment Application Roadmap (PaaS / SaaS) Right sizing Business Factors Remediation Drives Azure IaaS migration decisions Azure IaaS (Rehost) On-Prem IaaS (Retain / Retire) Hybrid Deploy Move Application to Azure Application Remains On-Prem  Retire within 12 months stays on-prem Application Dependencies How MSIT is Assessing Applications for Azure IaaS  Identify Technical Blockers  Hard Blockers  Potential Blockers  Evaluate servers against Blockers  Remediate Potential Blockers

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31. Top Ten Recommendations 8 1.Embrace the cultural changes needed for successful cloud migration and adoption. 2.Scrutinize what is really needed before moving to the cloud. 3.Establish and communicate clear roles, skillsets required, accountabilities and success metrics. 4.Provide workload awareness tools to enable the right choices. 5.Adopt an “eliminate before migrate” philosophy. 6.Invest in app re-engineering, smart automation and monitoring. 7.Focus on the importance of process change in order to fully benefit from cost optimization. 8.Understand that cloud benefits, such as elasticity, won’t be realized by legacy IT applications. 9.Make smart decisions around best platform. Get it right the first time. 10.Understand tactical needs (acceleration, datacenter shutdown) and how this may impact strategic long term plans. Top 10

35. IaaS Application Assessment Methodology (1/2) List of all Servers Production Servers Dev/Test Servers UAT Servers Organize Server List Phase 1 Evaluate Rejection Criteria  Data Classification = HBI  Internet Facing (DMZ/extranet)  Unsupported Region  SQL High Availability (Always On)  Network connectivity restrictions  Host Application Roadmap  Retire within 12 months  Apps Pre-prod Environments Categorized as ‘Sustain’ Red Servers Green Servers Phase 2 Evaluate Hardware/OS Criteria Hardware  CPU/RAM don't fit available SKUs  Drive size too large (>1TB)  Max Data Disks > (16) Networking  Multiple NIC’s / IP’s  MS NLB  MS Clustering  Networking connectivity limitations Operating System  Unsupported OS/SQL Ver. Software  3 rd Party components Installed Evaluate Performance Data  Using SCOM / Sonar data to right-size and flag servers that currently do not fit into available Azure SKUs as yellow Red Servers Yellow Servers Green Servers Eval Hybrid/Full Eval Full Uplift Eval Hybrid Only Eval Hybrid OnlyEval Hybrid/FullEval Hybrid Only On Prem Organize Servers into Applications with Server Status * If any are true, Flag server Yellow* If any are true, Flag server Red

36. IaaS Application Assessment Methodology (2/2) All Servers Green All Servers Red  Hardware assessment  Network assessment  Operating System Upgrade  Domain assessment  Software assessment Evaluate Full Uplift Deploy Servers mixed Green/Yellow Evaluate Hybrid/Full Deploy Evaluate Hybrid Only Deploy Servers mixed Red/Green Servers mixed Red/Yellow/Green All Servers Yellow Evaluate Hybrid/Full/ On-Prem Deploy Servers mixed Red/Yellow Evaluate Hybrid/ On-Prem Deploy On-Prem Deploy Hybrid Deploy Remediate all (Yellow) Servers to either (Red) or (Green) After remediation, all servers within an application will be either (All Red) or (All Green) or (Mix of Red/Green) All Red -> Stays On-Prem All Green -> Evaluate for external latency dependencies Mix of Red/Green -> Evaluate for internal latency dependencies. Move to Azure Hybrid Deploy On Prem Move to Azure Evaluate (Inner App) Latency Dependencies  (Is it possible to spit the app across on-perm and Azure) Evaluate (External) Latency Dependencies Not Latency Sensitive On Prem Evaluate moving associated apps together Apps can move together Latency Sensitive Phase 4: Integration Dependencies Not Latency Sensitive Latency Sensitive Azure IaaS Ready Phase 3: Server Remediation Apps can NOT move together Evaluate Additional Business Factors  Risk Analysis  Costs (resource/reengineering)  App changes based on Effort/Costs  Refactor (PaaS)  Revise (PaaS/SaaS)  Rebuild (PaaS)  Replace (SaaS) Solution  Hardware Optimization  Avail Groups  HLB  Geo-Redundancy Latency Estimates: Within Datacenter < 15ms Across Datacenter 25-35ms Corp to Azure 25-75ms With golden gate 50-75ms Dependency Assessment Tools  Factfinder (network)  Precise (SQL) (Continued from page 1)