5. I want a single view of Public and Private Clouds I virtualized, and now I have virtual server sprawl I need to meet my SLAs and respond with agility to business problems and opportunities I have over a dozen management tools from various vendors that don’t work well together It’s expensive to manage all of my infrastructure with multiple tools and processes I want predictable spend for datacenter management

6. 1.Customers will face confusing choices as virtualization, Cloud system software, and infrastructure automation software converge. 2.Private Clouds will grow like gangbusters, one use case at a time. 3.2012 will be VMware's last year as king of the hill. Source: IDC, Dec 2011, “IDC Worldwide System Infrastructure Software 2012 Top Predictions Report”

10. XenServer ESX

11. XenServer ESX

12. Processor-based licensing No additional VM charge Processor-based licensing No additional VM charge Server Management: 16 -> 2 editions Client Management: 13 -> 3 licenses Server Management: 16 -> 2 editions Client Management: 13 -> 3 licenses All f eatures, all the time Software Assurance included with all licenses All f eatures, all the time Software Assurance included with all licenses Private Cloud Value: Maximizing Cloud capacity with unlimited virtualization Private Cloud Value: Maximizing Cloud capacity with unlimited virtualization Consistent Capabilities: Including all Private Cloud features in every license Consistent Capabilities: Including all Private Cloud features in every license Simple Licensing: Product offerings simplified to two licensing editions Simple Licensing: Product offerings simplified to two licensing editions

13. Attach Services Outreach Close the Deal Advise and Plan Deploy Reach out to existing and new customers with a targeted story You… Attach additional services to include ongoing management, new solutions, and Cloud offerings You… Assure customers that the best long- term option is available today You… Deploy System Center and help transform your customers’ costly legacy systems to Cloud-enabled environments You… Assess, advise, and help your customers make the right purchasing decision to build a long-term Cloud-optimized plan with short-term value You…

14. = Attach Services Outreac h Close the Deal Advise and Plan Deploy

15. Ready Outreach Sell

17. How much the Private Cloud market is expected to grow between 2010-2015 Leading Management Solution Fastest Growing Virtualization Solution 43% = Source: “Worldwide Enterprise Server Cloud Computing 2010–2014 Forecast” IDC, May 2010 Source: IDC Management Tracker: Microsoft Internal research Source: IDC WW Quarterly Server Virtualization Tracker, March 2011

19. Backup & Recovery 2006 Application Insight IT Process Automation 2009 Configuration 1994 Service Management Server Virtualization 2007 Monitoring 2000 2010 Service Manager Orchestrator Data Protection Manager Operations Manager Configuration Manager App Controller new Virtual Machine Manager new Virtual Workload Provisioning Backup & Recovery Application Insight IT Process Automation Configuration Service Management Monitoring Service Manager Orchestrator Data Protection Manager Operations Manager Configuration Manager App Controller new Virtual Machine Manager new Virtual Workload Provisioning Manage Private and Public Cloud applications and workloads with a common solution

20. Hybrid IT Management Cloud Creation & Delegation Multi-Hypervisor Support Deep Application Insight Server Application Virtualization Process Automation Dynamic Optimization Network Monitoring Service Templates Self-Service Portal Productive Infrastructure Predictable Applications Your Customers’ Cloud

21. EMPOWER USERSUNIFY INFRASTRUCTURESIMPLIFY ADMINISTRATION

22. Infrastructure integration & management Server consolidation, virtualization, and migration Server upgrade Storage (SAN), backup, disaster recovery, and security Desktop management Private Cloud strategy and planning services Private Cloud design and integration services Private Cloud security and compliance services Datacenter transformation for Private Cloud Systems & process management, automation, and orchestration Self-service & charge-back, and showback Workload-based services Hybrid Cloud Productive Infrastructure Predictable Applications Your Customers’ Cloud

23. Consolidation of point software solutions to a robust and comprehensive management platform that reduces software licensing and maintenance spend on niche solutions Improved management of a Private Cloud implementation: Enhancements in SCVMM and SCOM enable accelerated server virtualization which drives down hardware costs Enhanced desktop management Datacenter transformation for Private Cloud The core components of SCCM/SCSM and Orchestrator will position the customer to benefit from Enhanced efficiencies around self-service Charge-backs, process management Workload automation and orchestration Cost savings when purchasing the entire suite if already purchasing SCCM/SCOM/SCSM Productive Infrastructure Predictable Applications Your Customers’ Cloud

24. Comparison: Microsoft (WS 2008 R2 SP1+System Center 2012) vs VMware (vSphere 5 + Cloud Infrastructure Suite) Microsoft Focuses on Applications while VMware Focuses on Infrastructure Servicing Automation Monitoring Configuration VM Management Microsoft enables deeply integrated service management across both physical and virtual infrastructure. Microsoft has 30+ integration packs, mostly focused on 3 rd party tools. VMware has 6, mostly focused on VMware products. Microsoft has best-in-class workflows and automation. Only Microsoft monitors the Workload + OS + VM + Network. VMware’s workload monitoring is limited to memory, CPU, disk, and network. Only Microsoft provides application problem diagnosis, enabling developer operations (dev-ops) scenarios. Microsoft is the most widely used configuration life cycle management tool on the market. It has been available since 1996, while VMware’s product was first released in 2011. Microsoft is tightly integrated with the rest of System Center, while VMware’s is standalone.  Microsoft offers cross-platform management, server app-V integration, and service templates.  Microsoft has built-in resiliency. With VMware, the expensive vCenter Heartbeat product is required.

25. Source: Microsoft Partner Economic Model for Server Virtualization, Microsoft internal estimates $374K $132K Cost PartnerMargin $506K Enabling Private Cloud $207K Combined Margin $449K Combined Cost $656K $75K $75K $374K $132K Private Cloud PartnerMargin Cost of Private Cloud Potential higher margin Cost of Virtualization Example based on 100 server consolidation scenario + Private Cloud (software, hardware, services)

27. What stays the same What changes Managed devices require Management Licenses Concept of an Operating System Environment (OSE) and when a Management License is required Server MLs differentiated based on virtualization rights & suited into ECI Standalone products become components of integrated product Management Licenses Software Assurance is included with all licenses Server Management Licenses align to processor-based model, each license covers two processors Management server software and supporting SQL Runtime are now included with every Management License and Management Server Licenses are discontinued Client MLs differentiated on component functionality and suited into Core CAL/ECAL

28. Enrollment for Core Infrastructure (ECI) Licensing Improvements Two OSEs Unlimited OSEs Enrollment for Core Infrastructure Standard Enrollment for Core Infrastructure Datacenter

29. 82% System Center Suites 65% Premium Mix 86% Attach to Windows Server Greater deal size by attaching management, security, and Software Assurance (SA) by default Creates opportunities for more new EA customers Increases upsell opportunity by 25% More than 2x System Center attach to Windows Server = more revenue

30. Capabilities Workloads: OS + Applications Identity & Security Development Management Virtualization Platform Services + Hardware + Software UNCHANGED PARTNER OPPORTUNITY TODAY NEW BUS. OPPORTUNITY

31. 16X 7.6X At 15 VMs per processor, Microsoft Private Cloud solution is 1/16 th the cost of a comparable VMware Private Cloud solution Using vCOPS Enterprise Plus Private Cloud with 500 VMs @ 4GB each Price advantage increases win ratio for Microsoft partners and accelerates sales cycle

32. vCenter Operations vCenter Site Recovery Manager 5 vShield 5.0 vCloud Director 1.5 License: Per VM License: Per PROC + vRAM vCenter 5.0 License: Per Instance Windows Server Datacenter Complex licensing Multiple tools, no single SKU Charge for every VM Simplified licensing Single SKU Unlimited virtualization rights ECI Datacenter Allows: Unlimited instances of Windows Server Management for unlimited numbers of VMs Security for unlimited number of VMs System Center Datacenter (SMSD) Forefront Endpoint Protection vSphere 5.0 License: PER Processor

33. 1 2 3 4

34. Incentives for licensing activities in Major and Corporate Accounts incentives (depending upon the customer segmentation) Solutions incentives (Management and Virtualization SIP) if the partner completed the required account engagement activities Up to 30% Earn Workload Accelerators for Management and Virtualization if they were in place in an area for Corporate Accounts incentives ECI LAR Bounty if submitted as per program guidelinesUp to $2000 SAM Services incentives on the enrollment if the engagement is approved by the local SAM Engagement Manager Private Cloud Deployment Services provides the opportunity to drive more sales by evaluating customer environments and getting monetary benefit by using customer SA hours SA hours Partner ProgramIncentive Amount

35. Overview Eligibility Goal Effective Date* *Or until funding is consumed September 1, 2011 to June 15, 2012 First 205 qualifying ECI deals worldwide (non-US) Applicable for participating LAR/EA Direct Advisors. Targeted to Sales and Licensing roles. All participating individuals encouraged to take 60 min sales or 90 min licensing training. Partner Sales Rep incentive plan to drive ECI wins Must be in Corporate Accounts (EPG-CAM, SMSP-CAM or SMSP-CTM, PS, CS sub-segments) Qualifying Segments Min ECI deal size is 50 processors Must be net new ECI agreement Eligible Deals $1000 or $2000 USD per new ECI paid to LARs to compensate associated LAR sales reps Payout Amount

37. Journey to the Cloud Goal: Drive Demand and optimize opportunities New: Private Cloud Immersion Private Cloud Launch Goal: Fundamentally change industry momentum by winning Private Cloud New: Major H2 Execution Hyper-V Cloud Accelerate Resources for Microsoft Cloud assessments, proof of concept, pilots, and deployments Solution Incentive Program Management and virtualization solution partners can earn fees up to 20 percent of the deal size on eligible opportunities Deployment Planning Services Drive more sales by evaluating customer environments and getting monetary benefit by using customer SA hours Fast Track Partners Pre-configured servers from Fast Track Partners help you get your private cloud solutions deployed faster Cloud Assessment Tool Lead generation tool for developing and implementing Private and Public Cloud solutions Sales Planning/Deployment Help solve customer IT planning, deployment, and operational challenges with no-cost Microsoft Solution Accelerators

38. PLAN MPN Private Cloud Site Windows Server® 2008 R2 SP1 with Hyper-V™ & System Center 2012Hyper-V™System Center 2012 System Center 2012 Community Evaluation Program System Center 2012 Community Evaluation Program Private Cloud System Center 2012 Boot Camp Private Cloud System Center 2012 Boot Camp Microsoft Private Cloud Practice Builder Microsoft Private Cloud Practice Builder ENABLE Virtualization Competency Virtualization Competency Identity and Security Competency Identity and Security Competency Systems Management Competency Systems Management Competency Server Platform Competency Server Platform Competency Microsoft Action Pack Solution Provider Microsoft Action Pack Solution Provider CREATE DEMAND Customer Cloud Assessment Tool Customer Cloud Assessment Tool Private Cloud Campaign Materials Private Cloud Campaign Materials Pinpoint Microsoft Private Cloud Accelerate Program Microsoft Private Cloud Accelerate Program Microsoft Assessment and Planning Toolkit (MAP) Microsoft Assessment and Planning Toolkit (MAP) SELL Private Cloud Strategy & VMware Compete Course Private Cloud Strategy & VMware Compete Course The Solutions Incentive Program The Solutions Incentive Program Enrollment for Core Infrastructure (ECI) Enrollment for Core Infrastructure (ECI) License Mobility through Software Assurance License Mobility through Software Assurance DEPLOY Deployment Planning Services Deployment Planning Services Microsoft Private Cloud Fast Track Microsoft Private Cloud Fast Track Hyper-V™ Deployment Guides Hyper-V™ Deployment Guides 12345 For more information on System Center 2012, visit the Microsoft Server and Cloud Platform site!Microsoft Server and Cloud Platform site

39. © 2011 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.

41. Server Management LicensingClient Management Licensing

42. System Center 2012 Licensing Editions Two OSEs Unlimited OSEs

43. Configuration Manager Client ML Endpoint Protection Subscription Client Management Suite Client ML Components IncludedConfiguration Manager Virtual Machine Manager Endpoint ProtectionService Manager Operations Manager Data Protection Manager Orchestrator Included in Core CAL Suite Included in Enterprise CAL Suite Client Management Licenses (MLs) are required for managed devices that run non-server OSEs Client MLs are available on a per-OSE or per-user basis Components included in the Client MLs are not available separately Three System Center 2012 Client ML offerings

45. Flexibility with delegation and control Application self-service across clouds Physical, virtual, and cloud management Predictable ApplicationsProductive InfrastructureYour Cloud Heterogeneous support Process automation Self-service infrastructure Deep application monitoring and diagnosis Comprehensive application manageability Service-centric approach

46. Data Protection Manager Configuration Manager

47. Service Manager App Controller Operations Manager NEW!

48. Virtual Machine Manager Orchestrator NEW!

49. Advanced datacenter transformation for Private Cloud Hybrid Cloud Planning and design services Infrastructure and application management Application migration and management across Private Cloud and Public Cloud Hosting and managed services Hosted infrastructure Hosted applications Managed services Outsourcing and service-oriented insourcing Public Cloud Value-added services Packaged solutions and components Productive Infrastructure Predictable Applications Your Customers’ Cloud