Volume Licensing Readiness: Windows Server 2016 System Center 2016

Volume Licensing Readiness: Windows Server 2016 System Center 2016
Level 100/200 October 2016 Frédéric de FRÉSART

Agenda 9/16/2018 1 The big picture 2 Windows Server 2016 and System Center 2016 3 Licensing overview 4 Licensing scenarios 5 Offers, benefits, and summary of changes © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

The big picture

Data center evolution to support business needs
Modern app development Worldwide use of public cloud services will reach $141 billion by 2019* Azure Cloud-first Hybrid cloud Business value Applications and services Flexible infrastructure Efficiency We’d like to begin by discussing how the data center is evolving, in order to provide some context to the changes coming in Windows Server 2016 and System Center 2016. Take a moment to absorb the quote shown: “worldwide use of public cloud services will reach $141 billion by 2019”. There’s a real willingness within the customer base to see this evolution happen and embrace it. That’s the main driver in what will follow. When you look at Infrastructure in this graphic, note that historical increases in reliability and efficiencies have driven down costs. We’re starting to see the efficiency curve begin to plateau. Applications and Services in a cloud-first environment represent the next wave of opportunity: The ability to quickly develop applications and provide services in a cloud-first world. That next phase is driving everything coming out with the new release of Windows Server 2016 and System Center The four boxes on the right of the slide (modern app development, hybrid cloud, flexible infrastructure, virtualization and standardization) are key components of the business need associated with a cloud-first strategy. Each will improve efficiencies across applications and services, driving down development time (and cost). It’s with these needs in mind that Microsoft is launching Windows Server 2016 and System Center 2016. Windows Server 2016 brings cloud-inspired capabilities to the data center, giving customers the platform they need to drive competitive value. Advances in compute, networking, storage, and security give customers added flexibility to meet changing business requirements. Modern application platform features, such as Windows Server Containers, increase speed and agility. Make innovation easier with Windows Server 2016. System Center 2016 brings cloud learnings to the data center, enabling seamless management of complex environments. With comprehensive monitoring, hardware and virtual machine provisioning, robust automation, and configuration management, System Center 2016 offers a simplified data center management experience. It allows customers to stay in control of their IT resources across the data center and the cloud. Infrastructure Virtualization and standardization Evolution of the data center *IDC Worldwide semiannual public cloud services spending guide, January 2016

Windows Server business model transformation
Today… Customers run workloads on-premises and in the cloud Licensing model is processor-based when on-premises and core-based in the cloud This dual currency creates complexity for our customers On-premises Azure A new approach is needed to enable consistency across environments Align to a common currency of cores Offer consistent approach across environments Enable multi-cloud scenarios Improve workload portability for Windows Server though benefits such as Azure Hybrid Use Benefit (HUB) Remove friction from different licensing models Let’s review how the Windows Server business model looks today, and how it’s transforming to support the cloud-first environment of tomorrow. Currently, customers run their workloads both on-premises and in the cloud. This creates two separate licensing models, with on-premises licensing being processor-based and cloud licensing being core-based. The dual currency of today’s licensing creates added complexity for customers. To simplify customer experience and reduce complexity, both Windows Server and System Center will transition to core licensing in the Standard and Datacenter editions. This change creates consistency across environments and provides the following benefits: Align to a common currency of cores Offer a consistent approach across both on-premises and cloud environments Enable multi-cloud scenarios Improve workload portability for Windows Server Remove friction and complexity caused by different licensing models. The change to core based licensing is one of the several steps Microsoft is taking to evolve our server licensing to support hybrid cloud. The move of Windows Server and System Center 2016 to core licensing aligns the servers to a common and consistent licensing denomination that is already a standard measure for capacity across environments: With server licensing in the 2016 release becoming core based, Windows Server and System Center will align with Azure and SQL. The change to physical cores aligns private and public cloud licensing to a consistent currency of cores that simplifies licensing of hybrid use cases. Going forward, the alignment to cores provides one underlying capacity currency across environments, which should enable faster deployment, development and easier licensing for customers to understand. This is a big step towards a mobile-first and cloud-first world. Now that we’ve established the “why” behind this significant change, let’s go more in-depth on the changes, features and licensing components coming with the launch of Windows Server 2016 and System Center 2016. Azure Cloud datacenter On-premises

Windows Server 2016 System Center 2016

Windows Server 2016 Security at the OS level
PRISM FY16 9/16/2018 1:12 AM Windows Server 2016 The cloud-ready server operating system (OS) that delivers new layers of security and Azure-inspired innovation for applications and infrastructure Security at the OS level Built-in security capabilities Identity protection Secure the virtualization platform Software-defined Datacenter (SDDC) Cloud-ready Application Platform Built-in SDDC capabilities Affordable and enterprise ready Azure-inspired infrastructure Built-in containers Lightweight Nano Server option Bring licenses to Azure Windows Server 2016 is the most cloud-ready server Microsoft has ever built and includes technology that was inspired by experience in the public cloud. It has significant improvements in security, software defined infrastructure, and technologies to help developers build modern micro-service based applications - in the cloud or on-premises. Security at the OS level- Deliver new layers of security to control privileged access, protect virtual machines and harden the platform against emerging threats – to help customers prevent attacks and detect suspicious activity more quickly. Minimize attack surface and require fewer security patches/reboots by deploying “just enough” OS with the new Nano Server option. Prevent risk associated with compromised administrative credentials using new privileged account management features to limit access to “just enough” and “just in time” administration. Shielded Virtual Machines provide protection from malicious administrators and compromised hosts by using Bitlocker to encrypt your virtual machines. Protect every Windows Server 2016 deployment, regardless of Cloud it’s running, with features such as Code Integrity, Defender, Control Flow Guard, etc. Software-defined Datacenter: Evolve your datacenter to achieve cost-savings and flexibility with compute, storage and network virtualization technologies proven at scale in Microsoft Azure. Nano Server, a new headless deployment option, offers a dramatically smaller footprint and fewer reboots and patches. Deliver storage solutions with your choice of hyper-converged or converged storage architecture. Create affordable business continuity and disaster recovery among datacenters with Storage Replica synchronous storage replication. Make applications highly available and responsive with a built-in load balancer and other network technology that runs Azure. Cloud-ready Application Platform: Innovate with a single application platform optimized for the applications of today, as well as the cloud-based apps of tomorrow. Move your applications to a cloud-ready operating system, so they are ready to move to the cloud when you are. Windows Server Containers bring the agility and density of containers to the Windows ecosystem, enabling agile application development and deployment. Use the lightweight Nano Server deployment option for the agility and flexibility that today’s application developers need. It’s the perfect option for running applications from containers or micro services. Run Windows Server on-premises or in the public cloud. Save money by bringing the Windows Server licenses you own to Azure, and pay the lower base to compute rate with Azure Hybrid Use Benefit (SA required.) © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Windows Server 2016 editions
Description Licenses License model CAL requirements Windows Server 2016 Datacenter For highly virtualized data center and cloud environments Per core Per core/CAL WS CAL 2016 Standard For physical or minimally virtualized environments 2016 Essentials For small businesses with up to 25 users and 50 devices. Essentials is a good option for customers using the Foundation edition, which is not available for Windows Server 2016. Per server Specialty Servers No CAL required Windows MultiPoint Server 2016 Premium* Enables multiple users to access one computer; available only for Academic licensing. Server/CAL WS CAL+RDS CAL Windows Storage Server 2016 For dedicated OEM storage solutions. Available in Standard and Workgroup editions through the OEM channel. OEM Microsoft Hyper-V Server 2016 Free hypervisor download. Not applicable Here is a look at the Windows Server 2016 editions, with emphasis on Datacenter and Standard. We’ve also highlighted the license type, license model and CAL requirements for each edition, where applicable. A couple things to take particular note of here: As we’ve discussed (and will continue to discuss), Standard and Datacenter editions will be moving to a core based licensing model in Windows Server Foundation Edition is being discontinued and merged with Essentials into a single SKU, Microsoft Windows Server 2016 Essentials. Windows Server 2016 Essentials will continue to be licensed per server under the Specialty Server license model. MultiPoint Server will have a single offering, Windows Server 2016 MultiPoint Premium Server. MultiPoint Server 2016 Premium will continue to be licensed per server under the Server/CAL license model. MultiPoint Server 2016 Premium with be licensed with both Windows Server 2016 CAL and Windows Server 2016 Remote Desktop Services CAL. MultiPoint Server 2016 Premium will be available through the Volume Licensing channel for Academic customers only. Windows Storage Server 2016 will continue to be licensed per server and available in the OEM channel. *Corporate customers can use the Windows MultiPoint Premium Server role that will be available in Standard and Datacenter editions. Windows Server CALs and RDS CALs are required for Multipoint Server.

Windows Server 2016: feature differentiation across main editions
Standard Edition Datacenter Edition Core Windows Server functionality • OSEs*/Hyper-V containers 2 Unlimited Windows Server containers Nano Server** Host Guardian Service Storage features including Storage Spaces Direct and Storage Replica Shielded Virtual Machines Networking stack Standard and Datacenter Editions Delivers enhancements to core Windows Server functionality Makes modern app development features accessible Needs Software Assurance to deploy and operate Nano Server (Current Branch for Business) in production Datacenter Edition Continues to enable high density virtualization Adds advanced software-defined datacenter capabilities, new networking stack and Shielded Virtual Machines A notable change coming with Windows Server 2016 is feature differentiation across the main editions (Standard and Datacenter). Datacenter Edition will continue to support customers’ virtualization optimization with unlimited virtualization rights both for containers and VMs. Datacenter Edition will also provide advanced software defined datacenter capabilities to make it ideal for highly virtualized or private cloud environments. Additional storage features, including Storage Spaces Direct and Storage Replica, are available in Datacenter Edition. Additionally, Datacenter customers will be able to utilize Shielded Virtual Machines, a newly available set of hardware-rooted security technologies that strictly isolate the VM from host administrators and provide an enhanced security layer. Datacenter customers will also be able to access the networking stack. The Standard Edition of Windows Server 2016 will continue to support low to non-virtualized scenarios and also the use of containers, building in additional cloud value. Customers with Standard Edition will be able to license up to 2 VMs or 2 Hyper-V containers when all of the physical cores on the server are licensed, while also offering unlimited rights for Windows Server containers. As stated, both of these primary editions offer rights to container technologies for developers to leverage regardless of the edition they are running. Hyper-V is still included in both editions, and no pre-existing features were moved from one edition to another. Nano Server, a new minimal-footprint OS deployment option, is available in the Volume Licensing channel in both Standard and Datacenter editions for customers with Software Assurance. Let’s give some background on the features while we’re here too: Containers - For efficiency, many of the OS files, directories and running services are shared between containers and projected into each container’s namespace. Only when an application makes changes to its containers, for example by modifying an existing file or creating a new one, does the container get distinct copies from the underlying host OS – but only of those portions changed, using Docker’s “copy-on-write” optimization. This sharing is part of what makes deploying multiple containers on a single host extremely efficient. Nano Server - “Just Enough OS”. Optimized minimum-footprint OS for infrastructure and modern applications. The nucleus of next-generation cloud infrastructure and applications. Higher density and performance for VMs and Containers Host Guardian Services - Decryption keys controlled by external system <-> Key release policy for trusted environment. Hardware-rooted security technologies that strictly isolate the VM from host administrators. Protection against inspection, theft, and tampering from both malware and datacenter administrators. Storage Spaces Direct - Microsoft recently announced a new feature called Storage Spaces Direct that enables to make a storage solution in High Availability with local storage of each node. It is a great improvement for Software-Defined Storage (SDS). It simplifies the deployment and management of software-defined storage systems and unlocks the use of new classes of disk devices that were previously not possible with clustered Storage Spaces with shared disks. Storage Replica (SR) - SR is a new feature that enables storage-agnostic, block-level, synchronous replication between servers or clusters for disaster recovery, as well as stretching of a failover cluster between sites. Synchronous replication enables mirroring of data in physical sites with crash-consistent volumes to ensure zero data loss at the file-system level. Asynchronous replication allows site extension beyond metropolitan ranges with the possibility of data loss. Storage Replica offers new disaster recovery and preparedness capabilities in Windows Server 2016 Technical Preview. For the first time, Windows Server offers the peace of mind of zero data loss, with the ability to synchronously protect data on different racks, floors, buildings, campuses, counties, and cities. After disaster strikes, all data will exist elsewhere without any possibility of loss. The same applies before a disaster strikes; Storage Replica offers the ability to switch workloads to safe locations prior to catastrophes when granted a few moments warning - again, with no data loss. Storage Replica allows more efficient use of multiple datacenters. By stretching clusters or replicating clusters, workloads can be run in multiple datacenters for quicker data access by local proximity users and applications, as well as better load distribution and use of computing resources. If a disaster takes one datacenter offline, you can move its typical workloads to the other site temporarily. Shielded VMs - VM-State and Data are encrypted, Host Guardian Service authorizes shielded VM use or decryption. New "Encryption Supported" mode that offers more protections than for an ordinary virtual machine, but less than "Shielded" mode, disk and traffic encryption, and other features. Full support for converting existing non-shielded Generation 2 virtual machines to shielded virtual machines, including automated disk encryption. Networking - First, customers can now both mirror and route traffic to new or existing virtual appliances. Together with a distributed firewall and Network security groups, this enables them to dynamically segment and secure workloads in a manner similar to Azure. Second, customers can deploy and manage the entire Software-defined networking (SDN) stack using System Center Virtual Machine Manager. Finally, they can use Docker to manage Windows Server container networking, and associate SDN policies not only with virtual machines but containers as well. We’ve supplied a section on the key new features of Windows Server 2016 in the appendix (Nano Server, Containers, Shielded VMs, and Cloud-inspired Infrastructure), should anyone be interested in learning more about them. *OSE refers to a server Operating System Environment. Windows Server Standard Edition license permits two OSEs or VMs when all physical cores are licensed **Software Assurance is required to deploy and operate Nano Server in production

Windows Server 2016 offerings by VL program*
Open License Select Plus Microsoft Products and Services Agreement Open Value and Subscription Enterprise Agreement and Subscription Open Value Subscription - Education Solutions Enrollment for Education Solutions (under CASA) No changes with 2016 Windows Server 2016 Essentials ● Windows Server 2016 Datacenter (2 pack Core License) Windows Server 2016 Standard (2 pack Core License) Windows Server 2016 CAL Windows Server 2016 External Connector Windows Server 2016 Active Directory Rights Management Services CAL Windows Server 2016 Active Directory Rights Management Services External Connector Windows Server 2016 Remote Desktop Services CAL Windows Server 2016 Remote Desktop Services External Connector As you can see here, there are no changes to program availability with the release of Windows Server the 2016 offerings are available across all VL programs, with the lone exception being Essentials, which is only available in Open License, Open Value and Open Value Subscription, OVS-ES, and EES. Some of the listed availability is conditional, so consult the Product Terms for detailed information on program availability. *For detailed information on program availability, please consult the Product Terms © 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Windows Server 2016 Servicing
There are two servicing models available to Windows Server Volume Licensing customers: Long Term Servicing Branch (LTSB) and Current Branch for Business (CBB). Windows Server is LTSB by default All Windows Server deployments, with the exception of Nano Server, will be serviced by the traditional model of 5 years of mainstream support following General Availability plus 5 years of extended support. Cumulative updates will contain security and quality fixes, but no new features or functionality. Only Nano Server deployments are CBB For Nano Server installations, the servicing will be more frequent in nature. This option will be available only to Software Assurance customers. This installation option is only available via the Volume Licensing channel due to the requirement for Software Assurance. There are two servicing models available to Windows Server customers: Long Term Servicing Branch (LTSB) and Current Branch for Business (CBB). The servicing model will be determined based on the installation option the customer chooses. For Server with Desktop Experience (the GUI Windows Server installation option) as well as Server Core, customers will be serviced by the traditional model which they are familiar with, which we are now calling LTSB. That allows 5 years of mainstream support following General Availability, plus 5 years of extended support. For deployments using the new Nano Server installation option, customers will be using the Current Branch for Business (CBB) model, similar to Windows 10 CBB. LTSB: The default model for Windows Server 2016 will be the LTSB approach (5 + 5 years support) for deployments of Server with Desktop Experience as well as Server Core. With LTSB, cumulative updates will contain security and quality fixes but no new features or functionality. Customers can choose when and how they install cumulative updates. Each update release will be a cumulative update that includes all previous and current fixes. So by installing an update, the customer will also be installing any previous updates that were not yet installed. CBB: Based on customer feedback on how they want to run their datacenters more efficiently, Microsoft has designed an installation option for Windows Server that installs only the minimum set of code for key datacenter workloads. In this deployment model, customers want to be able to continuously move forward and on-board new technologies as they become available. With that in mind, for deployments using the new Nano Server installation option, customers will be using the Current Branch for Business (CBB) model. This installation option is only available via the Volume Licensing channel (no Retail/OEM) due to the requirement for Software Assurance. Software Assurance customers opt-in to CBB by installing Nano Server. Since a Nano Server CBB deployment continues to move forward with new technologies and ultimately new features and functionality, Software Assurance is required to ensure rights to these future enhancements of the operating system. CBB releases are not automatically applied by Microsoft and the customer retains full control over when the CBB is installed. The CBB releases are, however, mandatory and will be required to be installed over time in order to keep receiving security patches. CBB releases will require a reinstall of the operating system. However, given the core use cases for Nano Server at Windows Server 2016 GA (e.g. as the host for compute or storage clusters or the base kernel for Windows Server containers), updates should happen without disruption to the services they support. Nano Server is available on the Windows Server 2016 media, available for download from the Volume Licensing Service Center (VLSC), and can be installed from the Windows Server 2016 evaluation version. Future installations of Nano Server will be available for download from the Volume Licensing Service Center (VLSC). Customers can transition from a CBB deployment of Windows Server 2016 Nano Server to a “long term” deployment of Windows Server 2016 (with Desktop Experience or Server Core, but this requires a reinstall of the operating system. There will not be a Current Branch (CB) offering for Windows Server. System Center 2016 will continue with the traditional service model of 5 years mainstream support following GA plus 5 years of extended support.

System Center 2016 capabilities overview
Server & Tools Business System Center 2016 capabilities overview 9/16/2018 System Center 2016 brings cloud learnings to the data center, enabling seamless management of complex environments. Stay in control of IT resources across the data center and the cloud. Infrastructure provisioning Infrastructure provisioning Enterprise-class, multi-tenant infrastructure for hybrid environments Infrastructure monitoring Comprehensive monitoring of physical, virtual, and cloud infrastructure Infrastructure monitoring Automation Automation Application-owner agility while IT retains control Backup Backup and recovery for private clouds, physical machines, clients, and server applications IT service management IT service management Flexible service delivery Let’s now discuss System Center 2016. System Center 2016 brings cloud learnings to the datacenter, enabling seamless management of complex environments. With comprehensive monitoring, hardware and virtual machine provisioning, robust automation, and configuration management, System Center 2016 offers a simplified data center management experience. It allows customers to stay in control of their IT resources across the data center and the cloud. Here are the key System Center 2016 functions and capabilities: Infrastructure provisioning – This is about enabling enterprises and service providers to provision an infrastructure that meets their key requirements such as workload scale/performance, heterogeneity, multi-tenancy, and chargeback. System Center can help provision custom or standardized infrastructure for on-premises, service provider, or Microsoft Azure environments. Infrastructure monitoring – System Center provides a single toolset to monitor infrastructure resources—physical, virtual, or cloud computing models—across on-premises, service provider, and Microsoft Azure environments. Automation and self-service – System Center will continue to give application owners the agility they need while enabling datacenter admins (in enterprises and service providers) with the tools they need to drive the needed cost-effectiveness and IT control. Backup – System Center will support continuous data backup, protection and recovery for servers such as SQL Server, Exchange Server, SharePoint, virtual servers, file servers, and support for Windows desktops and laptops. IT service management – System Center will continue to provide enterprise IT deliver services in a flexible manner by providing the necessary service management processes such as custom service request offerings, process/ knowledge integration, and chargeback.

System Center 2016 editions and features
Standard Edition Datacenter Edition OSEs*/Hyper-V containers 2 Unlimited Windows Server containers Configuration Manager • Operations Manager Data Protection Manager Virtual Machine Manager Service Manager Orchestrator Endpoint Protection Standard and Datacenter Editions Deliver enhancements in server management from 2012 R2 Unified management across customer, service provider, and Azure data centers Support provisioning and monitoring of new Windows Server 2016 capabilities (e.g. Nano Server, Shielded Virtual Machines) Datacenter Edition Continues to support management of highly virtualized servers After running down the capabilities of System Center 2016, let’s discuss the Standard and Datacenter editions. Unlike Windows Server 2016, the System Center editions will be differentiated by virtualization rights only, as it was with System Center 2012 R2. As you can see, and just as with Windows Server 2016, Datacenter Edition will offer unlimited virtualization rights both for containers and VMs. Standard Edition will license up to 2 VMs or 2 Hyper-V containers when all of the physical cores on the server are licensed, while also offering unlimited rights for Windows Server containers. System Center 2016 helps customers realize the Microsoft Cloud OS vision by delivering unified management across customer, service provider, and Windows Azure datacenters, leveraging the following features: Configuration Manager: A family of Microsoft change and configuration management systems for Microsoft Windows based desktop and server systems. Operations Manager: Microsoft server software that provides event management, proactive monitoring and alerting, reporting, and trend analysis services. Data Protection Manager: A family of Microsoft server software that supports continuous disk-based backup and recovery on Windows Server-based networks. Virtual Machine Manager: Microsoft server software for a virtualized data center that enables increased physical server usage, centralized management of virtual computer infrastructure and rapid provisioning of new virtual computers by the administrator and end users. Service Manager: A Microsoft information technology service desk product that provides enhanced support for IT service management, with functionality such as a self-service portal, and incident, problem, asset, change management for end-to-end automation of IT processes and a platform to support integration across the System Center product family, unifying workflows and IT management processes. Orchestrator: A component of Microsoft System Center that provides orchestration, integration, and automation of IT processes between Microsoft and non-Microsoft IT tools through the creation of runbooks. Endpoint Protection: A core capability of System Center 2012, part of Client Management and Security. *OSE refers to a server operation system environment under management by System Center

System Center 2016 offerings by VL program*
Open License Select Plus Microsoft Products and Services Agreement Open Value and Subscription Enterprise Agreement and Subscription Open Value Subscription - Education Solutions Enrollment for Education Solutions (under CASA) No changes with 2016 System Center 2016 Datacenter Server Management License (2 pack Core License) ● System Center 2016 Standard Server Management License (2 pack Core License) System Center 2016 Client Management Suite per OSE (Client ML) System Center 2016 Client Management Suite per User (Client ML) System Center Configuration Manager 1606 Client Management License per OSE System Center Configuration Manager 1606 Client Management License per User System Center Configuration Manager 1606 Client Management License (Client ML) (Student Only) System Center Endpoint Protection 1606 (Device and User SL) Here is a look at System Center 2016’s offerings and program availability, though we will once again note that there are no changes to program availability with this release. One thing you may notice is the “1606” naming convention on the Configuration Manager and Endpoint Protection offerings, which replace 2012 R2. “1606” denotes the year (2016 or ‘16) and month (06 or June) that they were added. As with Windows Server 2016, some of the listed availability is conditional, so consult the Product Terms for detailed information on program availability. *For detailed information on program availability, please consult the product terms © 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Core Infrastructure Server Suite (CIS Suite)
What is CIS? The CIS Suite includes the latest versions of Windows Server and System Center and is a very popular way for customers to license Windows Server and System Center together at a discount. The CIS Suites are offered in two editions – CIS Suite Standard and CIS Suite Datacenter. Core Infrastructure Products CIS SKUs (Windows Server + System Center) Product The CIS Suite SKU contains the latest versions of Windows Server and System Center Version Update: moving from CIS Suite with 2012 R2 editions to CIS Suite with 2016 editions Licensing Update: licensed per core (after General Availability) Pricing No change: price for 16 core licenses of CIS Suite 2016 is the same as the two processor license of 2012 R2 Program availability No change: still available in Open License, Select Plus, MPSA, Open Value and Open Value Subscription, Enterprise Agreement and EAS, OVS-ES and EES Let’s take a moment for a refresh on Core Infrastructure Server Suite, or CIS Suite. The CIS Suite SKU is a very popular way for customers to license Windows Server and System Center together at a discount. After Windows Server 2016 and System Center 2016 become generally available, CIS will undergo a few changes of its own that we’ve outlined here. Version: The CIS Suites will move from the 2012 R2 editions of Windows Server and System Center to the 2016 editions. Licensing: CIS Suite licensing will move to the core-based model after GA. There is no change to pricing. The price for 16 core licenses of CIS Suite 2016 is the same as the two processor license price of CIS Suite 2012 R2. There is no change in program availability for the CIS Suites, as they will still remain available in Open License, Select Plus, MPSA, Open Value and Open Value Subscription, Enterprise Agreement and EAS, OVS-ES and EES.

Licensing overview

Windows Server 2016 licensing basics
Standard and Datacenter editions Transitioning from processor to core Servers are licensed based on the number of processor cores in the physical server. To license a physical server, all physical cores must be covered. A minimum of 16 core licenses is required for each server. A minimum of eight core licenses is required for each physical processor. The price for 16 core licenses of Windows Server is the same as the two processor license of Windows Server 2012 R2. Existing customers’ servers under SA will be granted additional cores as needed, with documentation. License physical cores License each user or device Server licensing (Transitions from processor to core) Users or devices (No change in CALs) No change Now that we’ve discussed the features, editions, and availability of Windows Server 2016 and System Center 2016, let’s move to licensing. As discussed, the server licensing for Windows Server and System Center will become core based with the 2016 release. The change to physical cores aligns private and public cloud licensing to a consistent currency of cores that simplifies licensing of hybrid use cases. Going forward, the alignment to cores provides one underlying capacity currency across environments. That was the primary motivation for this change. Here are a few key elements to the change, and how server licensing in Windows Server 2016 will work: Servers are licensed based on the number of processor cores in the physical server. To license a physical server, all physical cores must be covered. A minimum of 16 core licenses is required for each server. A minimum of 8 core licenses is required for each physical processor. From a pricing perspective, the price for 16 core licenses of Windows Server is the same as one 2-processor license of Windows Server 2012 R2. Existing customers’ servers under SA will be granted additional cores as needed, with documentation. There is no change in Windows Server CAL licensing with the 2016 release.

System Center 2016 licensing basics
Standard and Datacenter editions Transitioning from Processor to Core The server management licensing of System Center 2016 will move to be based on physical cores. Core-based licensing will align with the Windows Server 2016 model to provide a consistent licensing metric for managed VMs. Client Management Licenses (CMLs) are required for managed devices that run non-server OSEs. Configuration Manager and Client Management Suite are sold as CML (OSE and User). Endpoint Protection sold as SL (Device and User) License physical cores License each user or device Server management licenses (Transitions from processor to core) Users or devices (No change in CMLs) No change System Center’s Server Management Licensing is transitioning from processor-based to core-based, while Client Management Licenses (CMLs) will continue to be available on a per device or per user basis. Server management licensing in System Center 2016 is also transitioning from the processor-based to core-based model, in order to align with Windows Server and provide a consistent licensing metric for managed VMs. The licensing model for Standard and Datacenter will be the same as 2012 R2 with server and client management licenses, though server licensing will now be core based. Server MLs are required for managed devices that run server operating system environments (OSEs). Client Management Licenses (CML) are required for managed devices that run non-server OSEs. CMLs are available on a per OSE or per user basis. Just as with Windows Server CALs, there is no change to CML licensing.

Core licensing: overview
Application of licensing requirement Volume Licensing (VL): The number of licenses required equals the number of physical cores on the licensed server subject to a minimum of eight licenses per physical processor and a minimum of 16 licenses per server. Service Provider Licensing Agreement (SPLA): The number of licenses required equals the number of physical cores on the licensed server subject to a minimum of eight licenses per physical processor. Licenses Core licenses: sold in 2-pack Core License Minimum for VL: eight 2-pack Core License per server Minimum for SPLA: four 2-pack Core License per processor VL and SPLA: Additional 2-pack Core License required, as necessary, for processors with more than eight cores per processor Windows Server 2016 Standard and Datacenter Licensed server A B C D E F Physical processors 1-proc. 2-proc. 4-proc. Physical cores per physical processor 4 20 10 Total physical cores 8 16 40 VL Core licenses 32 2-pack core licenses SPLA 2-pack Core Licenses Explanation VL server must be licensed with a minimum of 16 licenses. SPLA server must be licensed with a minimum of eight cores per processor. Let’s take a step back and offer an overview of core-based licensing for Windows Server 2016 and System Center 2016 now. This overview highlights the rules for core-based licensing, both in Volume Licensing (VL) and the Service Provider Licensing Agreement (SPLA). The key difference between VL and SPLA is in the licensing minimum: VL: each physical processor is subject to an eight core license minimum, and each physical server (including single-processor servers) is subject to a 16 core license minimum. That means the minimum required core licenses for any server is 16, or eight 2-packs of Core Licenses. SPLA: each physical processor is subject to an eight core license minimum, with no additional minimum attached to the physical server. The minimum required core licenses is eight, or four 2-packs of Core Licenses. In terms of general rules and application, core licenses will be sold in 2-packs. As mentioned, the minimum for VL is eight 2-core pack Core Licenses per server. The minimum for SPLA is four 2-pack Core Licenses per processor. For both VL and SPLA, additional 2-pack Core Licenses are required for processors with more than eight cores per processor. Additional cores can then be licensed in increments of two cores (i.e. one 2-pack Core License) for gradual increases in core density growth. This scenario table shows the number of licenses required to cover the physical cores per processor in a server in the new model, both for VL and for SPLA. 1 2

Core grants: rules and application
General grant rules Customers with Software Assurance will receive core grants at the time of expiration after Windows Server 2016 has launched. Additional core grants will be provided for processors with greater than 8 cores per processor. Additional core grants require documentation of server environment (using Software Inventory Logging or third-party inventory tools). Application of core grants for VL Standard core grant (full core licenses): each two-processor license equals 16 core licenses. Additional core grant (additional core licenses): For processors with more than eight cores/proc. Explanation Each processor license with SA is granted 16 core licenses at expiration of current term. Each processor license is eligible to be granted Additional Core Licenses for all physical cores on the licensed server in excess of sixteen total. Total grant provides customer sufficient licenses to continue running the same number of VMs under 2016 core licensing as they are under R2 processor licensing. With 2012 R2 Standard, a 4-proc server requires two licenses and has rights to 4 VMs. With Standard, licensing all cores on the server gives rights to 2 VMs. Therefore, the Standard grant covers all cores on the server for each license. Windows Server 2016 Standard Licensed server A B C D E F Physical processors 1-proc. 2-proc. 4-proc. Physical cores per physical processor 8 20 4 10 Total physical cores 16 40 Required proc. licenses* 1 2 Grant Full core licenses 32 Additional core licenses 48 Total grant 64 80 Now that we’ve provided an overview of core licensing, let’s talk about how core grants work. SA customers can upgrade to Windows Server 2016 at no additional cost. At end of the SA term, processor licenses will be exchanged for core licenses and customers can renew their SA on core licenses. To support the transition of customers with Software Assurance to Windows Server 2016 or System Center 2016, grants will be provided for existing licensed servers with greater than 16 cores. Windows Server Datacenter and Standard Edition 2-proc licenses with SA will be granted a minimum of 8 two-core pack licenses (16 core licenses) and will be eligible for additional core licenses sufficient to cover their server. At the end of agreement term, customers should do a self-inventory to document the number of physical cores in each processor in use that are licensed with Windows Server processor licenses with SA. This will enable customers to receive the appropriate number of core licenses to continue deployments. To be eligible for Additional Core Licenses, Customer must establish and maintain a record of the physical hardware and the configuration of the Licensed Server to which its Eligible Licenses are assigned (using either the Microsoft Software Inventory Logging tool or any equivalent software). On the table, which is an example of Windows Server Standard, we see our various servers, along with the total physical cores of each. Below, you can see the number of required proc licenses. Each processor license with SA is granted 16 core licenses at expiration of current term. You can see how many full core licenses the server would be granted, as well as any additional core licenses would be granted, where applicable. Each processor license is eligible to be granted Additional Core Licenses for all Physical Cores on the Licensed Server in excess of sixteen total. The total grant indicated at the bottom will provide the customer sufficient licenses to continue running the same number of VMs under 2016 core licensing as they are under 2012 R2 processor licensing for each of the servers indicated above. 1 2 3 4 *2012 R2 Standard processor-based licensing: One license covers two processors, and gives rights to run 2 VMs.

Core pricing: overview
Requirement: The number of licenses required equals the number of physical cores on the licensed server subject to a minimum of eight licenses per physical processor and a minimum of 16 licenses per server. No price change: The price for 16 core licenses of 2016 Standard (or Datacenter) is the same as the current price for one 2-processor license of 2012 R2 Standard (or Datacenter) Price change: Cost of two additional cores per processor increases the price of licensing the server by 25%, given the required minimum of eight licenses per processor and the minimum of 16 licenses per server. Windows Server 2016 Standard Edition Licensed Server A B C D E F Physical processors 1-proc. 2-proc. 4-proc. Physical cores per physical processor 8 20 4 10 Total physical cores 16 40 Minimum Core licenses 32 2-pack core licenses Standard L&SA price of 2012 R2 $421 $842 L&SA price of 2016 $526 $1,052 Percent price change 0% 25% Let’s discuss pricing now. For this overview, we’re showing the Level A price for Windows Server 2016 Standard Edition. What you’ll see is that as in the previous tables, we’ve highlighted pricing for 1-proc servers with either 8 or 20 cores 2-proc servers with 4 or 10 cores per processor 4-proc servers with 4 or 10 cores per processor Below, you can see how many physical core licenses and corresponding 2-pack Core Licenses would be required to license each server. Remember, the number of licenses required equals the number of physical cores on the licensed server, subject to a minimum of 8 licenses per physical processor and a minimum of 16 licenses per server. You can see the L&SA price of Windows Server 2012 R2 Standard Edition and Windows Server 2016 Standard Edition. Server A, Server C and Server E all will experience no change in price from 2012 R2 to 2016, because the price for 16 core licenses of 2016 Standard (or Datacenter) is the same as the current price for one 2-processor license of 2012 R2 Standard (or Datacenter). Server B, Server D and Server F would all experience a 25% increase in price from 2012 R2 to 2016, as the cost of 2 additional cores per processor increases the price of licensing the server by 25%, given the required minimum of 8 licenses per processor (2/8 = .25) and the minimum of 16 licenses per server (4/16 = .25). 1 2 3 2 3 2 3 SA prices: Level A, enterprise 6 ERP prices for United States, corporate, direct to end-user in in USD (annualized)

Enterprise Agreement customer path
At expiration, Renewing SA and Non-Renewing SA customers will be granted cores. Event Customer path Licensing model Renewing Non-Renewing New Before launch Uses WS and/or SC 2012 R2 (or earlier) with SA Proc. based At launch Has next-version rights with SA Post launch Uses WS and/or SC 2012 R2 (or earlier) Uses WS and/or SC 2016 Core based True-Up Adds WS and/or SC (version-less) licenses Net-new purchase Buys WS 2016 and/or SC 2016 licenses SA expiration Migrates to cores (WS and/or SC licenses with active SA) Minimum core grant (1 proc-based L = 16 core-based L) Additional core grant (documentation required for >8 cores/proc) Not applicable Customer type Non-renewing SA: Grants via Product Terms Renewing SA: Grants via new SA SKU purchases Post expiration This slide shows an overview, broken down by event, of what licensing rights and model customers with Software Assurance will be subject to. The most important takeaway on this slide is that all customers with SA at Windows Server 2016 launch will be granted cores at the expiration of their agreements, whether they renew SA or not. Looking at this timeline by event, we have three different customer types: one customer renews SA, one customer does not renew SA, and there is a new customer who enrolls after Windows Server 2016 launch. The renewing customer has proc-based licensing up to renewal. Upon renewal, they will be granted cores and migrate to core-based licensing. They receive core grants through new SA SKU purchases. The non-renewing customer is also on proc-based licensing up until their renewal window. Should they elect not to renew their SA, they will still migrate to cores and receive core grants, though those come via the Product Terms. A new customer who enrolls after Windows Server 2016 launch will be on core-based licensing. MPSA customers will start purchasing cores after general availability For Open, Open Value, and Open Value Subscription customers after general availability: There are no true-ups Customers will start purchasing cores at GA

Licensing scenarios

Core licensing – basic scenarios
1 Renewal: Windows Server 2016 General Availability with ≤8 cores per proc. 2 Renewal: Windows Server 2016 General Availability with >8 cores per proc. 3 True-ups: Windows Server 2016 General Availability 4 Here we’ll be covering some licensing scenarios for Windows Server We’ll look at renewals, both for a 2-proc server with 8 or less cores per processor and more than 8 core per processor. We’ll look at how True-ups work, both before and after GA. We’ll review core grants for customers with SA, and then we’ll look at stacking with Standard Edition licenses before and after GA For all of these topics, we’ll be discussing scenarios centered around a 2-processor server, which is the most common server on the market. Note that these scenarios all could apply to single processor servers as well. Core grants: customers with Software Assurance 5 Stacking with standard licenses

Scenario 1: renewals on ≤8 cores/processor
Scenario and application Customer type: renewing Software Assurance before or after Windows Server 2016 General Availability Standard license: customer has active SA on a two-processor server with eight cores per processor Key takeaways Renewals before Windows Server 2016 General Availability remain on processor-based licensing for the life of the agreement. Renewals after Windows Server 2016 General Availability will transition to core-based licensing. The price for 16 core licenses of Windows Server 2016 is the same as the two-processor license of Windows Server R2. Before General Availability After General Availability Licensing Processor-based Core-based Number of licenses One 2-processor Standard license Eight 2-core packs of Standard core licenses Renewal price $180 Percent price change from Windows Server 2012 R2 0% Here, we’ll be looking at the changes to both licensing and pricing upon Software Assurance (SA) renewal for a customer with Standard Edition and active SA on a 2-proc server with 8 cores per processor. The transition from processor-based licensing to core-based licensing will not affect customers with SA until renewal. Prior to renewal, customers who have licenses with SA may upgrade to Windows Server 2016 and System Center 2016 at any time. As you can see on the table, if the customer renews their SA prior to Windows Server 2016 GA, their licensing would remain processor-based for the life of their agreement, with one 2-processor Standard license required. However, a renewal after GA would mean the customer would transition to core-based licensing. Now eight 2-core packs of Standard Edition core licenses would be required for the server. There would be no change in price from what the customer paid to license the server under Windows Server 2012 R2 in the proc-based model. Key takeaways Renewals before Windows Server 2016 General Availability remain on processor-based licensing for the life of the agreement. Renewals after Windows Server 2016 General Availability will transition to core-based licensing. The price for 16 core licenses of Windows Server 2016 is the same as the 2-processor license of Windows Server 2012 R2. Price: level A, Enterprise 6 ERP prices for United States, corporate, direct to end-user in in USD (annualized)

Scenario 2: renewals on >8 cores/processor
Scenario and application Customer type: renewing Software Assurance before or after Windows Server 2016 General Availability Standard license: customer has active SA on a two-processor server with 10 cores per processor Key takeaways Renewals before Windows Server 2016 General Availability remain on processor-based licensing for the life of the agreement. Renewals after Windows Server 2016 General Availability will transition to core-based licensing. Core grants will be provided for servers with greater than eight cores per processor and 16 cores per server. In this case, customer will receive additional core grants for four cores. Customer pays for Software Assurance on incremental cores only. In this case, four cores. Before General Availability After General Availability Licensing Processor-based Core-based Number of licenses One two-processor Standard license Ten 2-core packs of Standard core licenses Renewal price* $180 $225 Percent price change from Windows Server 2012 R2 25% Now let’s see what changes in a very similar scenario to the previous one. Here, the customer has active SA on a 2-proc server with ten cores per processor instead of eight. A few things don’t change from the previous scenario: If the customer renews their SA prior to Windows Server 2016 GA, their licensing would remain processor-based for the life of their agreement, with one 2-processor Standard license required. Renewal after GA would still mean the customer would transition to core-based licensing. But in the core-based licensing model, they now need to license ten 2-core packs of Standard licenses to cover their 20 total cores, rather than just needing one 2-proc server license. That would represent a 25% price change from the proc-based licensing of Windows Server 2012 R2. Fortunately and as we saw earlier, core grants will be provided for servers with greater than eight cores per processor or 16 cores per server. This 2-proc server with 10 cores per processor falls under that umbrella. The base grant will cover 16 cores, so additional core grants for the remaining four cores would apply. The customer would only pay SA on those four incremental cores as well. Key Takeaways Renewals before Windows Server 2016 General Availability remain on processor-based licensing for the life of the agreement. Renewals after Windows Server 2016 General Availability will transition to core-based licensing. Core grants will be provided for servers with greater than 8 cores per processor and 16 cores per server. In this case, customer will receive additional core grants for 4 cores. Customer pays for Software Assurance on incremental cores only, in this case, 4 cores. Price: level A, Enterprise 6 ERP prices for United States, corporate, direct to end-user in in USD (annualized)

Scenario 3: True-ups Scenario and application Key takeaways
Standard license: standard license on two-processor server with 10 cores per processor with customer renewal after General Availability of Windows Server 2016 Key takeaways Renewals and True-ups before Windows Server 2016 General Availability remain on processor-based licensing. Renewals and True-ups after Windows Server 2016 General Availability will transition to core-based licensing. No core grants on true-ups. True-up before renewal and General Availability True-up after renewal and General Availability Licensing Processor-based Core-based Number of licenses One two-processor Standard license Ten 2-core packs of Standard core licenses True-up price* $421 $526 Percent price change from Windows Server 2012 R2 25% What about True-ups? True-ups are dependent upon when the customer is due for renewal of the agreement: If the renewal of the agreement is before GA, then the customer will be on the processor model for the life of the agreement. In this case, the True-ups will also be processor-based and there will be no price impact. If the renewal is after GA, the agreement will be core-based and True-ups will be core-based as well. The price change for True-ups will be based on the number of cores per Server. There are no license grants for True-ups; grants apply only to existing licenses. In this scenario, the customer has a Standard license on a 2-proc server with 10 cores per processor. Their agreement renewal will come up after Windows Server 2016 GA. That means their agreement will be core-based, as will any True-ups. Since core grants only apply to existing licenses, True-ups are not eligible for grants. The core-based True-up price will be a 25% increase over the proc-based True-up price. Key takeaways: Renewals and True-ups before Windows Server 2016 General Availability remain on processor-based licensing. Renewals and True-ups after Windows Server 2016 General Availability will transition to core-based licensing. No core grants on True-ups. Price: level A, Enterprise 6 ERP prices for United States, corporate, direct to end-user in in USD (annualized)

Scenario 4: core grants for SA customers
Scenario and application Customer type: core grants are provided at the time of SA renewal, after Windows Server 2016 General Availability (GA) Standard license: customer has active SA on a two-processor server with 10 cores per processor, renewing SA after GA Key takeaways Core grants will be provided* for servers with greater than 8 cores per processor and 16 cores per server Customers with Software Assurance will receive core grants at the time of renewal after Windows Server 2016 GA Customer pays extra for Software Assurance on incremental cores only Before General Availability After General Availability Licensing Processor-based Core-based Number of licenses One two-processor Standard license Ten 2-core packs of Standard core licenses Renewal price* $180 $225 Percent price change from Windows Server 2012 R2** 25% Base core grant 16 Additional core grants 4 Let’s take a look at how customers with Software Assurance will receive core grants for Windows Server 2016 after General Availability (GA). This customer has active Software Assurance (SA) on a 2-processor server with 10 cores per proc. They’ll renew their SA after Windows Server 2016 GA. Since their renewal is occurring after GA, the customer will migrate to core licensing at the time of renewal. If they renewed before GA, they would stay on proc-based licensing for the life of the agreement, as we discussed earlier. The base core grant covers 16 cores, while this customer has 20 cores total to license. Assuming the customer has inventoried and documented their licensing environment, they will receive additional core grants to cover the remaining four cores not covered by the base grant. Additionally, the customer will only pay Software Assurance on those four cores. Key takeaways: Customers with SA will receive core grants at the time of renewal after Windows Server 2016 GA. Core grants will be provided for servers with greater than 8 cores per processor and 16 cores per server (with required documentation). In this case, the customer will receive additional core grants for 4 cores. Customer pays extra for SA on incremental cores only, in this case 4 cores. Price: level A, Enterprise 6 ERP prices for United States, corporate, direct to end-user in in USD (annualized) *Core grants provided with required documentation

Scenario 5: Stacking Standard
Scenario and application Customer type: customer wants to run 4 VMs on a 2-processor server with 10 cores per processor Standard license: customer has active SA on a 2-processor server with 10 cores per processor, renewing SA after GA Key takeaways Windows Server 2012 R2: entitlement to two VMs on a two-processor Windows Server 2012 R2 license. To add two more VMs, customer has to add one, two-processor Standard 2012 R2 license. Windows Server 2016: entitlement to two VMs when the two-processor server with ten cores each is fully licensed. To add two more VMs, customer has to license all the cores in the server again. In this case, the customer is required to license 40 cores to receive entitlement to four VMs. Before General Availability After General Availability Licensing Processor based Core based Number of VMs required 4 Number of licenses for additional two VMs Two 2-proc Standard license 20 2-core packs of Standard core licenses Price $842 $1053 Percent price change from Windows Server 2012 R2 25% Stacking standard licenses to increase virtualization rights is a popular approach for Windows Server Standard Edition customers. Customers with Standard Edition licenses can attach or “stack” multiple licenses to a single server to increase virtualization rights. Each license will increase virtualization rights by two virtual machines. Let’s look at a scenario around the differences in stacking Standard licenses before and after Windows Server 2016 GA. Here, we have a customer that wants to add four virtual machines to a 2-proc server with 10 cores per processor. Under proc-based licensing, one 2-proc standard license entitles them to two virtual machines. To add two more VM’s, the customer has to add one additional 2-proc standard license to the server. Under proc-based licensing, two standard licenses will give them four VMs. After GA and under core-based licensing, the customer is entitled to two VMs with 16 core licenses, or eight 2-Core Pack of Standard Licenses. To add two more VM’s to the two they are already entitled to, the customer will have to licenses all 20 cores in the server again, or add ten more 2-Core Pack Standard licenses to the server for a total of 40 cores licensed. In this scenario, stacking under the core-based model would result in a 25% price increase from stacking in the proc-based licensing model. Key takeaways: Windows Server 2012 R2: Entitlement to two VMs on a 2-processor Windows Server 2012 R2 license. To add two more VMs, the customer has to license two 2-processor Standard R2 licenses. Windows Server 2016: Entitlement to two VMs on an eight 2-core pack Windows Server 2016 license. To add two more VMs, the customer has to license all the cores in the server again. In this case, the customer is required to license 40 cores to receive entitlement to 4 VMs. Price: level A, Enterprise 6 ERP prices for United States, corporate, direct to end-user in in USD (annualized)

Offers, benefits and summary of licensing changes

New Windows Server 2016 Offer: 20% discount on Step-up to Datacenter
Timeline: Offer will be available from launch through June 30, 2017 Offer details 20% discount on Step-up SKU: For customers with Standard SA Offer eligible for existing customers with Standard Edition plus Software Assurance Discounted Step-up SKU available in the price list Incent customers to Step-up to Datacenter plus Software Assurance by offering a discount on the Step-up SKU 20% discount Offer strategy Targeted scenarios Current customers with Standard Edition plus Software Assurance The feature differentiation in Windows Server 2016 should create a lot of buzz and appeal for customers to seek to Step-up, and now Microsoft is offering a promotional discount to help facilitate that move. This offer will be available from launch through June 2017 and is targeted towards current Standard Edition customers with active SA. It’s available in the Enterprise Agreement and Open programs, including Government customers. The discounted Step-up SKU is available in the price list and will represent a 20% discount. Available in the Enterprise Agreement and Open programs, including Government Offer availability Customer can step-up and receive the discounted Datacenter plus Software Assurance SKU at Year one or Year two only Offer execution

Introducing the Azure Hybrid Use Benefit
Microsoft Build 2016 9/16/2018 1:12 AM Introducing the Azure Hybrid Use Benefit Benefits Use Windows Server licenses in Azure datacenters when covered by Software Assurance. In Azure, pay only for the base virtual machine service utilization. Datacenter edition can be run in Azure and on- premises simultaneously. Standard edition can be run either in Azure or on- premises Significantly reduce costs compared to running Windows Server in other public clouds. Details Software Assurance required. 16 core licenses of Windows Server Datacenter or Standard edition allows up to two Windows Server VMs on Azure at eight cores each. Annual cost of two D4 Windows Server virtual machines on Azure ~$16,000 Annual savings of ~48% or $7,600 Annual WS SA cost ~$142 Annual cost of two D4 base compute virtual machines on Azure ~$8,300 The Azure Hybrid Use Benefit (HUB) lets customers bring their on-premises Windows Server license with Software Assurance to Azure. Rather than paying the full price for a new Windows Server virtual machine, customers will only pay the base to compute rate, as shown above. The Azure Hybrid Use Benefit was enabled for Azure workloads on February 2nd, 2016. For each Windows Server Standard and Datacenter Edition license covered with Software Assurance, customers can move or add incremental workloads into Azure across two instances, up to 8 cores each, or one instance up to 16 cores, and pay non-Windows (Linux) pricing. With Datacenter Edition, customers get lower-cost instances in Azure as well as rights to maintain existing on-premises deployments. With Standard Edition, customers still get lower-cost instances in Azure, but must assign the license to Azure and decommission the corresponding on-premises workload. Azure Hybrid Use Benefit enables customers to continue to derive value in their on-premises investments and use them towards their cloud transitions. Hybrid benefits provide flexibility in the adoption and timing of cloud services and value via additional cloud use rights on top of the existing on-premises value. A purchasing decision made today retains it’s value in the future. The graphic on the right illustrates the value that Azure HUB can bring: the annual cost of two D4 Windows Server virtual machines on Azure is approximately $16,000 (USD). The annual cost of two D4 base compute virtual machines on Azure is about $8,300. Add in the annual SA cost of $142 and that is a an annual savings of 48% or $7,600. A few additional notes: Customers can upload their own Windows Server image to an Azure non-Windows VM Datacenter can continue being used for unlimited virtualization on premises Standard Edition cannot be used concurrently on premises and with this benefit Azure HUB basics: Each Windows Server processor license with SA = 16 virtual cores allocated across two or fewer Azure base instances. Each set of 16 Windows Server core licenses with SA = 16 virtual cores allocated across two or fewer Azure base instances. Each additional set of 8 Windows Server core licenses with SA = 8 virtual cores and one base instance. Azure HUB scenario: Question: If a HUB customer wants to run a 20 core VM after GA? Answer: They would need to assign 16+8 core licenses. Note: D4 Virtual Machine equals eight cores, 28GB RAM, 400GB Disk. Pricing comparison assumes EA Level D pricing (USD). © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Summary of licensing changes
Changes to licensing models Server licensing in Standard and Datacenter editions of Windows Server 2016 and System Center 2016 will be moving from processor-based to core-based. Servers are licensed based on the number of processor cores in the physical server. Customers with Software Assurance will receive core grants at the time of renewal, after Windows Server 2016 General Availability. Summary of licensing changes Feature differentiation between Standard and Datacenter Editions in Windows Server 2016 New features available in Datacenter Edition provide advanced software-defined datacenter capabilities, new networking stack and Shielded VMs. Nano Server deployments will be under the Current Branch for Business (CBB) servicing model Software Assurance customers who choose the Nano Server installation option will be serviced under CBB. There is no change to the traditional Windows Server servicing model (LTSB). In closing, here are the key licensing updates coming with the introduction of Windows Server 2016 and System Center 2016. Changes/Updates to Windows Server editions Only Standard and Datacenter editions are moving to core-based licensing. Windows Server Foundation and Windows Server Essential SKUs will be merged into a single SKU, Microsoft Windows Server 2016 Essentials. The 2016 Essentials Server licensing will continue to be server based. There are no changes to Windows Storage Server from 2012 R2. It will continue to be server based and available in the OEM channel.

Resources Licensing information Product and feature information
Windows Server 2016 and System Center 2016 licensing FAQ Windows Server 2016 licensing datasheet System Center 2016 licensing datasheet Product and feature information Windows Server 2016 System Center 2016 Hyper-V and Windows Server containers Nano Server Shielded Virtual Machines Microsoft software inventory tools Software Inventory Logging (SIL) Additional information on licensing, products and tools can be found at the links provided here.

Thank you

Appendix

New features overview Windows Server 2016

Windows Server 2016 feature overview
Benefit Description Licensing Impact Containers Empower application innovation Containers provide benefits of agility and productivity for app owners and flexibility and control for IT Datacenter Edition provides rights for unlimited OSEs, Hyper-V containers, and Windows Server containers Standard Edition provides rights for up to two OSEs or Hyper-V containers and unlimited Windows Server containers Nano Server Just enough OS Optimized minimum-footprint OS for infrastructure and modern applications Included with Datacenter Edition and Standard Edition* Shielded virtual machine Data security Hardware-rooted security technologies that strictly isolate the VM from host administrators Included with Datacenter Edition Cloud-inspired infrastructure Azure infused Cloud-inspired hybrid infrastructure-powered by WS, Hyper-V, SC, and Azure Cloud-optimized application platform, Azure-based Compute, Network, and Storage services Datacenter Edition includes Azure-inspired features for advanced software-defined scenarios: New storage features including Storage Spaces Direct and Storage Replica New Shielded Virtual Machines and Host Guardian Service New networking stack Here’s an overview of the key new features coming in Windows Server 2016: Containers, Nano Server, Shielded VMs and Cloud-inspired infrastructure. We’ve cleanly condensed them down to list the primary benefit, a brief description, and the licensing impact and/or availability. *Software Assurance is required to deploy and operate Nano Server in production.

New deployment option: Nano Server
9/16/2018 What is Nano Server? Nano Server is a new minimal-footprint OS deployment option, which is a more efficient data center host and also the perfect lightweight OS for native cloud applications. Nano Server is available to Windows Server 2016 customers with Software Assurance. Nano Server is deployed under the Current Branch for Business (CBB) servicing model. Third-party applications RDS experience Features of Nano Server “Just enough OS” Optimized for modern applications Higher density and performance Reduced attack surface and servicing requirements Next-gen distributed app frameworks Interoperate with existing server applications Traditional VM workloads Containers and modern applications As customers have adopted modern applications and next-generation cloud technologies, they’ve experienced an increasing need for an OS that delivers speed, agility, and lower resource consumption. Nano Server inherently provides these benefits with its smaller footprint. Nano Server is a new headless, 64-bit only installation option that installs “just enough OS,” resulting in a dramatically smaller footprint that results in more uptime and a smaller attack surface. Users can choose to add server roles as needed, including Hyper-V, Scale out File Server, DNS Server and IIS server roles. Users can also choose to install features, including Container support, Defender, Clustering, Desired State Configuration (DSC), and Shielded VM support. Nano Server can be remotely managed via PowerShell, Microsoft Management Console (MMC) snap-ins, or the new Server management tools cloud service. Nano Server is focused on two scenarios that demand a smaller footprint OS: 1. Cloud OS Infrastructure 2. Application platform for born-in-the-cloud applications running in a Guest VM or container Use the lightweight Nano Server deployment option for the agility and flexibility today’s application developers need. It’s the perfect option for running applications from containers or micro services. Nano Server is available to Windows Server 2016 customers with Software Assurance, under the Current Branch for Business (CBB) servicing model. Full GUI Specialized workloads Server Core Lower maintenance server environment Nano Server Just enough OS © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

New feature: containers
What is a container? A new approach to build, ship, deploy, and instantiate applications Unlimited OSEs, Hyper-V containers, and Windows Server containers in Datacenter Edition Up to 2 OSEs or Hyper-V containers and unlimited Windows Server containers in Standard Edition Benefits of Containers Further acceleration of app deployment Reduce effort to deploy apps Streamline development and testing Lower costs associated with app deployment Increase server consolidation Containers are an operating system-level isolation method for running multiple applications on a single control host. With developers building, and then packaging their applications into containers, and providing them to IT to run on a standardized platform, it reduces the overall effort to deploy applications, and can streamline the whole dev and test cycle, ultimately reducing costs. As containers can run on a host OS, which itself could be physical or virtual, it provides IT with flexibility and the opportunity to drive an increased level of server consolidation, all whilst maintaining a level of isolation that allows many containers to share the same host operating system. Windows Server Containers provide operating system level virtualization that allows multiple isolated applications to be run on a single system. Windows Server Containers address density and startup performance scenarios and achieve isolation through namespace and process isolation. Process Grouping (known as Job objects in Windows) is a mechanism of classifying and operating on a set of processes, as single unit. Job objects have existed in Windows since Windows 7/Windows Server 2008 R2 largely as a mechanism for applying basic resource controls on processes/sets of processes, this functionality was part of the foundation for Windows Server Containers. Namespaces isolation describes a form or virtualization where operating system-wide or global configuration can be instanced or virtualized to a given set of processes, as referenced by job objects. In order for applications inside containers to work properly, there are a number of namespaces that must be virtualized, some of the major ones include: storage, registry, networking, object tables and process tables. Each container has a virtualized view of these namespaces limiting its ability to see global properties of the container host or other containers running alongside it. Hyper-V Containers support the same features as Windows Server Containers and additionally addresses isolation and kernel variation, lending itself to complex application development and hostile multi-tenancy scenarios. Hyper-V Containers encapsulates each container in a lightweight virtual machine. Shared kernel container environments are not designed for “hostile” multi-tenancy scenarios while Hyper-V Containers are naturally designed for this type of multi-tenancy and have their root in hardware isolation properties. Examples of “hostile” multi-tenancy scenarios include: Highly regulated environments. Hosting environments. Competing workloads. Hyper-V Containers encapsulate each container in a lightweight virtual machine, providing the same level of isolation provided by virtual machines, addressing kernel isolation and variation requirements while providing the same density and startup performance associated with a container. Windows Server Container Bring the agility and density of containers to the Windows ecosystem, enabling agile application development and deployment Hyper-V Container Offer a unique additional level of isolation for sensitive applications with no additional coding required

New feature: Shielded Virtual Machines (VMs)
What are Shielded VMs? Shielded VMs help provide hosting service providers and private cloud operators the ability to offer their tenant administrators a hosted environment where protection of tenant virtual machine data is strengthened against threats from compromised storage, networks, host administrators, and malware. Included with Windows Server 2016 Datacenter Edition. Benefits of Shielded VMs Hardware-rooted security technologies that strictly isolate the VM from host administrators Protection against inspection, theft, and tampering from both malware and datacenter administrators VM-State and Data are encrypted, Host Guardian Service authorizes shielded VM use or decryption Step 1 Encrypt VM-state and data Guest OS Bins/Libs App C Step 2 Decryption keys controlled by external system Host Guardian Service Encrypted VM Step 3 Key release policy for trusted environment Windows Server 2016 delivers layers of protection that help address emerging threats and make Windows Server 2016 an active participant in your security defenses. These include the new Shielded VM solution that protects VMs from attacks and compromised administrators in the underlying fabric, extensive threat resistance components built into the Windows Server 2016 operating system and enhanced auditing events that will help security systems detect malicious activity. Shielded VMs and Guarded Fabric help provide hosting service providers and private cloud operators the ability to offer their tenants a hosted environment where protection of tenant virtual machine data is strengthened against threats from compromised storage, network and host administrators, and malware. A Shielded VM is a generation 2 VM (supports Windows Server 2012 and later) that has a virtual TPM, is encrypted using BitLocker and can only run on healthy and approved hosts in the fabric. You can configure to run a Shielded VM on any Hyper-V host. For the highest levels of assurance, the host hardware requires TPM 2.0 (or later) and UEFI (or later). Shielded VMs are included with Windows Server 2016 Datacenter Edition.

Cloud-Inspired Infrastructure
Data Plane (DP) – unit of compute, network, or storage abstracted from hardware Control Plane (CP) – higher level abstraction enabling software to centrally control the DP Management Plane (MP) – helps provision and operate the CP, consumes its output, and powers infrastructure-aware app innovation Windows Server | Hyper-V | System Center Standard APIs Compute Industry-standard servers Storage Industry-standard disks Security TPM-enabled hardware Networking Physical network Virtual machines File servers Shielded VMs Virtual networks DP Compute cluster Storage cluster Security controller Network controller CP Provisioning and operations MP Hardware API Windows Server 2016 delivers capabilities to help you create a more flexible and cost-efficient datacenter using software-defined compute, storage and network virtualization features inspired by Azure and the cloud. Resilient Compute: Run your datacenter with a highly automated, resilient, virtualized server operating system. Cloud-Inspired Networking : Windows Server 2016 delivers key networking features used in the Azure datacenters to support agility and availability in your datacenter. Reduced Cost Storage: Windows Server 2016 includes expanded capabilities in software-defined storage with an emphasis on resilience, reduced cost, and increased control. Layers of Security: Windows Server 2016 delivers new capabilities to prevent attacks and detect suspicious activity with features to control privileged access, protect virtual machines and harden the platform against emerging threats.

Windows MultiPoint Server

Windows MultiPoint Server 2016 Premium offerings by VL program
Windows MultiPoint Server 2016 Premium offerings by VL program* and migration 9/16/2018 1:12 AM Offering Open License Select Plus MPSA Open Value and Subscription Enterprise Agreement and Subscription Open Value Subscription - Education Solutions Enrollment for Education Solutions (under CASA) Windows MultiPoint Server 2016 Premium ● Windows Server 2016 CAL Windows Server 2016 Remote Desktop Services CAL Product changes with Windows MultiPoint Server 2016: Windows MultiPoint Server Premium edition only (no Windows MultiPoint Server Standard) Available to Academic customers only (no Corporate or Government) SA migrations from Windows MultiPoint Server 2012: Windows MultiPoint Server 2012 Standard and Premium migrate to Windows MultiPoint Server 2016 Premium Windows MultiPoint Server 2012 CAL migrates to Windows Server 2016 Remote Desktop Services CAL *For detailed information on program availability, please consult the product terms © 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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Volume Licensing Readiness: Windows Server 2016 System Center 2016

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Volume Licensing Readiness: Windows Server 2016 System Center 2016

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