1. Azure Virtual Machines
Technical data deck

2. Why care about dev-test scenario on Azure Infrastructure as a Service (IaaS)
50% of infrastructure is used for dev-test environments
65% of developers say it is too complicated and time-consuming to get development and test resources
10% average utilization of dedicated dev-test infrastructure
Compute:
Compute hours:
Total usage grows at a 75% CAGR driven by:
A300 sales field investment
General market growth
Evolving business & pricing models such as reservation or low-priority batch
New offerings and tiers that expand Azure’s addressable market (i.e. G-Series, Dv2)
Utilized Revenue:
Revenue grows at a 46% CAGR from FY16 to FY21 to reach $4.9bn ($5.6bn w/SQL IaaS)
IaaS growth forecast to outpace PaaS & PaaS V2–over time we expect IaaS / PaaS offerings to merge into single compute category
Premium SKUs (High-Mem & HPC) expected to account for 41% of revenue in FY21
ARPU:
ARPU declines at a 16% CAGR over the forecast period driven by pricing pressure, higher mix of reservation & EA customers.
ARPU decline partially offset by a mix shift to premium ARPU SKUs (16%  29%)
Changes vs Prior LRP:
Uplift in revenue resulting from A300 (increase to 5 year total of 47%)
5 Year totals in baseline roughly unchanged with lower than expected units offset by lower Basic Tier mix than before
Storage:
Usage:
Total usage grows at a 104% CAGR driven by:
Introduction of Cool offering
Net new demand from XIO
Overall increase in storage needs and elasticity from price declines
Pull-through from Compute and other services
Total utilized revenue growth at a 68% CAGR from FY16 to FY21 to reach $1.6bn
Shift to Cool storage negatively impacts ARPU but also drives additional usage to offset
ARPU is forecast to decline each year due to pricing declines for the overall market as the service becomes commoditized as well as general ‘cooling’ of storage as Cool becomes available
Shift to XIO (Premium Storage) helps offset some of the decline in overall storage ARPU
Uplift to original baseline of 19% largely driven by Premium Storage and TRX monetization
Uplift in revenue resulting from A300 (increase to 5 year total of 49%)
Inclusion of Cool (Mar ‘16)
Archive left out due to lack of committed plan
Increase in Premium storage due to higher than expected overprovisioning
Less ZRS mix than previously assumed

3. Microsoft Convergence 2015 EMEA
Dev-Test is first step in the journey to the cloud
Microsoft Convergence 2015 EMEA
11/16/2018 8:42 AM
DEV-TEST ENVIRONMENTS
PRE-PRODUCTION
PRODUCTION ENVIRONMENTS
Azure supports all your application needs – from Dev-Test workloads to full production environments
Leverage Azure for dev-test needs with Dev-Test Labs and VMs
Move pre-production and production workloads seamlessly to Azure with Azure Site Recovery
Azure supports multi-tier applications spanning premises for production environments
© 2015 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4. How to get started with the conversation
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50% App operations
25% Existing custom apps
10% New business apps
15% Packaged apps
Non-production
Production
1. Application operations
This is the majority of your customers application infrastructure – 50-70%
It’s used 5-10% of the time
Projects here are low risk and can have a large ROI
2. Apps your customers have purchased
What can your customer stop running on-premises?
Use the Software as a Service (SaaS) model or move to Azure
Microsoft (O365/Exchange/SharePoint, CRM, Visual Studio Online, etc.)
3. Apps your customers would like to build
Use the Azure Platform as a Service (PaaS) building blocks
More productive, less infrastructure work
4. Existing custom build production apps
Leave 80% of existing custom apps alone
Move small and high burst workloads
Speaker Notes:
The majority of what you have today is NOT PRODUCTION and NOT MISSION CRITICAL
Non-Production (Dev Test, Backup, DR) – these are the workloads to do first
© 2013 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.

5. What are the challenges in todays on-premises world
Compromised agility
Developers
IT admin
Request VMs
Provision VMs
Limited hardware budget
Resource contention with VMs
Your datacenter
Realistic scale tests often challenging
Procurement delays
Average utilization of dedicated dev-test infrastructure
Source: Business Case for Test Environment Management Whitepaper, Cognizant

6. Different roles – different priorities
Developers
IT admin
Build modern apps, for any platform, any device
Integrate on-prem, cloud, and hybrid infrastructure
Manage to shrinking IT budgets
Deliver apps quickly
Adjust easily to changing corporate needs and scale
Support updated business processes, products and services
Leverage familiar tools
Maintain security & compliance

7. What are the benefits of running dev-test in Azure
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Fast and easy provisioning
Simplify and speed the process of running a dev-test environment.
Provision virtual machines in minutes, whether its self-provisioning by developers or centralized control.
Test at realistic scale
Replicate real-world usage scenarios and gain a precise view into how applications will behave at scale and in production.
Improve your dev-test agility with Azure
Provision resources in minutes, instead of days or weeks
Test at production scale, to catch and fix problems before you release
Improve productivity with predefined images & application services
Load test your applications at production scale
Stage your pre-production environments in Azure to secure safe rollout of new features, service updates, etc
Azure supports Microsoft applications such as Dynamics, Sharepoint, Exchange, SQL.
Azure Marketplace provides easy access to VM Images from SAP, IBM, Oracle and more than 3000 others
Minimize waste and cost
Pay only by the minute for virtual machines, and allocate them as needed to developers
Save time and money with automation and scale
Minimize waste with visibility and tight control of computing resources. Use chargebacks to allocate costs to internal groups.
Minimize waste and cost
Gain visibility and control for usage of computing resources.
Eliminate waste and implement chargebacks to internal customers.
Use pay-as-you-go model without additional licensing for existing tools.
© 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.

8. Building a hybrid dev-test environment in Azure
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Connectivity
Migrations
Dev-Test labs
Connectivity
Create a dev-test environment that spans your datacenter and Azure with predictable, reliable and high-throughput connections that do not compromise security or performance.
Avoid the security risks of the internet by establishing a direct connection from your existing WAN or network provider
Move seamlessly from on-prem to Azure
Achieve seamless migrations from your on-prem environment to Azure in a single experience
Works whether you are using Hyper-V or VMware
Migrate multi-tier enterprise workloads with minimal data loss and app errors
Dev-Test Labs on Azure Worry-free self-service
Provision environments with allocated quotas and policies
Control Costs and track project spending
Create once, use everywhere
Create templates once and share with your team
Test easily in realistic scale scenarios
Achieve high fidelity between dev-test and prod environments
Deploy easily on-prem or in the cloud
Integrate with your existing tools
Leverage pre-made plugins and APIs
Dev-Test from preferred Command Line tool
© 2013 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.

9. Example: Bringing SharePoint to Azure
20-30x faster infrastructure provisioning on Microsoft Azure with provisioning time reduced from days to minutes
Azure offers popular SharePoint configurations through single, one-click deployments; each configuration is completely customizable to your particular requirements, including selection of Standard or Premium storage options for your most demanding workloads
Azure has the recommended hybrid connectivity story between your SharePoint farm deployed with Azure Virtual Machines, your O365 applications, and your on-premises deployments with ExpressRoute capabilities that help make sure high performance
Dev/Test
Build fast, easy, and lean dev/test environments
Quickly provision development and test environments
Minimize waste with quotas and policies
Set automated shutdowns to minimize costs
Create a VM in a few clicks with reusable templates
Get going quickly using VMs from pre-created pools
Build Windows and Linux environments
Source: *Telenor, and a large accounting firm realized 30% cost savings and 30X faster infrastructure provisioning times by moving SharePoint Dev/Test to Azure
© 2013 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.

10. On-premises DC Cost Breakdown
Typical TCO savings
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Deploying a SharePoint farm on Microsoft Azure
Azure Services included in scenario
53% cost savings1
55 VMs: 20 medium, 22 extra large, 13 A7
35 TB LR storage
35 TB zone 1 egress, 5 VPN connections
Azure Cost Breakdown
Annual Azure VMs expense
$172,071
Annual storage expense
$21,462
Annual egress expense
$36,792
Annual admin expense
$6,110
Annual other expenses
$1,599
Total
$238,034
On-premises DC Cost Breakdown
Annual hardware expense
$371,774
Annual software expense
$89,200
Annual power expense
$10,913
Annual administration costs
$11,638
Annual DC facility expenses
$27,166
Total
$510,691
Dev/Test
Build fast, easy, and lean dev/test environments
Quickly provision development and test environments
Minimize waste with quotas and policies
Set automated shutdowns to minimize costs
Create a VM in a few clicks with reusable templates
Get going quickly using VMs from pre-created pools
Build Windows and Linux environments
Note:
Assumptions have been sourced from public data sources including and and third party reports including Simpson, Nik. “Counting the cost of the Elephant in the Data Center.” Burton Group (2009). The savings quoted in the slides are actually quite conservative (e.g., we assume on-premises infrastructure is 100% utilized, assume a very power- efficient on-premises data center). Also, we are using Enterprise Architect Level A pricing to arrive at these numbers. For specific information on customer discounting levels, contact your account manager.
© 2013 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.

11. 11/16/2018 8:42 AM
© 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.