1. Heterogeneous Virtualization: Reducing Complexity Building bridges

2. Source: Gartner 25 th Annual Data Center Conference Interactive Polling Results, November–December, 2006 We live in a heterogeneous world Q: What is the make-up of major enterprise data centers? Mainframe, UNIX, Linux and Windows UNIX, Linux and Windows Windows and Linux Mainframe, UNIX and Windows Mainframe and Windows UNIX and Windows Windows servers only 39% 25% 5% 13% 3% 8% 5%

3. Agenda Interoperability - Partnership overview The case for virtualization Virtualization What problems/solutions What we are doing Microsoft, Novell, together Technology, Interoperability Lab, Demo Benefits of joint solution Business collaboration SUSE Linux Enterprise support certificates Special offers

4. Market snapshot (detail) Situation Market momentum is with two server operating systems - Windows and Linux 70%+ of customers have data centers that include both Windows and Linux However, customers are only using paid support for about half of the Linux that is deployed Consideration 1.3M non-paid Linux server OS deployments Customer benefits of paid Linux subscriptions Better support Better integration with Microsoft products IP piece of mind *Source: IDC Worldwide Quarterly Server Tracker (Feb 2008) **Source: IDC, “Worldwide Linux Operating Environments 2008–2012 Forecast: Taking Linux to the Next Level,” Doc # 211562, April 2008 New Server Hardware Share (IDC) * (on new server hardware) ‏ Linux OS 2007 Share (IDC) ** (Includes on old hardware, paid and non-paid) ‏

5. Bridging the divide November 2, 2006 Microsoft and Novell announced landmark collaboration agreement Targeting solutions for customers with Windows and Linux Delivering unprecedented customer value Interoperability via technology cooperation agreement (TCA) ‏ Virtualization Standards-based systems management Directory and identity federation Document format compatibility Accessible computing Moonlight (Silverlight browser plug-in) ‏ IP assurance via patent cooperation agreement Microsoft providing SUSE Linux Enterprise Server subscription certificates Joint sales, marketing, support programs

6. Developing and delivering interoperability are complicated tasks Requires a significant and sustained commitment Microsoft and Novell have built a 2500 sq ft interoperability lab in Cambridge MA Novell and Microsoft engineers working together to test our joint solutions The lab is a significant part of our engineering process Supported by 80+ servers and a SAN from the leading chip vendors and HW vendors Joint interoperability lab

7. The market has responded Novell’s growth now leads the industry The Microsoft / Novell agreement has led to substantial shifts in the Linux market based on customers choosing the benefits of SUSE Linux Enterprise with Microsoft partnership. Growth for paid Novell subscriptions grew 38.6% YoY in 2007 (industry’s highest growth rate) ‏ vs. 20.9% for Red Hat Novell grew 3 points of share to 29% vs. 2 point decline for Red Hat Major shift in non-paid Linux towards licensed / subscription Linux Non-paid Linux accounted for 54% of total Linux subscriptions/deployments in 2006, 49% in 2007 Customers see increased value in Linux support programs and other relationship benefits “That surge, thanks to the company's partnership and interoperability efforts with Microsoft, led to a highly successful year for Novell in 2007. The surge also led to a slight decrease in Red Hat's market share” Source: IDC, "Worldwide Linux Operating Environments 2008–2012 Forecast: Taking Linux to the Next Level," Doc #211562, April 2008

8. State of infrastructure today Physical server sprawl- Approaching 3 years of excess capacity (under-utilization) ‏ Systems Management and high availability are becoming critical criteria in selecting virtualization Rising power and cooling costs accelerating with cost of energy Management/Administration is now the largest component of IT costs Customers using virtualization today report savings in hardware costs, as well as costs for energy and real estate

9. The business case for virtualization Save money and reduce complexity Server consolidation and increased CPU utilization Cost savings through reduced hardware, power and space requirements Cost and administration savings through simplified management & backup Improve responsiveness and performance Rapid workload migration through VM hosting on newer, faster hardware Improve network performance via virtual data center Ability to add/tune resources based on changing performance requirements Increase flexibility and enable “Just In Time” computing Easily deploy, provision and remove VMs across multiple locations based on immediate needs using saved templates Ability to easily create test environments with snapshots Rapid disaster recovery through saved VM images

10. Virtualization is the isolation of one computing resource from the others Interface bound to process Storage assigned to specific locations Network assigned to specific locations Operating System assigned to specific hardware Applications installed to specific hardware and OS Traditional software stack Virtualization results in more efficient resource utilization and enables greater flexibility and simplified change management What is virtualization? Virtual presentation Presentation layer separate from process Virtual storage Storage and backup over the network Virtual network Localising dispersed resources Virtual machine OS can be assigned to any desktop or server Virtual applications Any application on any computer on-deman d Component isolation with virtualization

11. Test and development Business continuity management Dynamic data center Production server consolidation Server virtualization usage scenarios

12. Virtual Machine Hosts Physical Infrastructure Virtual Machine Manager agents deployed to virtual machine hosts Performance data collected to identify consolidation candidates Physical servers converted to virtual machines Performance data collected from VM hosts for intelligent placement Intelligent placement of each VM on optimal host Physical machines retired or repurposed Prioritized report of consolidation candidates Consolidation Management Tools

13. Virtual machine hosts Physical infrastructure Consolidation Management tools

14. Virtual machine hosts Physical infrastructure Virtual machine manager agents deployed to virtual machine hosts Consolidation Management tools

15. Virtual machine hosts Physical infrastructure Performance data collected to identify consolidation candidates Consolidation Management tools

16. Virtual machine hosts Physical infrastructure Prioritised report of consolidation candidates Consolidation Management tools

17. Virtual machine hosts Physical infrastructure Performance data collected from VM hosts for intelligent placement Consolidation Management tools

18. Virtual machine hosts Physical infrastructure Physical servers converted to virtual machines Consolidation Management tools

19. Virtual machine hosts Physical infrastructure Intelligent placement of each VM on optimal host Consolidation Management tools

20. Virtual machine hosts Physical infrastructure Consolidation Management tools Physical machines retired or re-purposed

21. Performance data collected from VM hosts for intelligent placement Centralized library of VM templates Virtual machine hosts Administrative provisioning Management tools

22. Centralized library of VM templates Virtual machine hosts Administrative provisioning Management tools

23. Centralized library of VM templates Pre-configured template selected for new VM Virtual machine hosts Administrative provisioning Management tools

24. Centralized library of VM templates VM configuration customized from template Virtual machine hosts Administrative provisioning Management tools

25. Centralized library of VM templates New VM created from configured template Virtual machine hosts Administrative provisioning Management tools

26. Performance data collected from VM hosts for intelligent placement Centralized Library of VM Templates Virtual Machine Hosts Administrative Provisioning Management Tools

27. Intelligent placement of new VM on optimal host Centralized library of VM templates Virtual machine hosts Administrative provisioning Management tools

28. Integrate the management of Virtual Servers with Physical Servers, employing centralized policy-based management for business agility and higher resource utilization Leverage advanced security, continuity and recovery opportunities to maximize business availability Drive the necessary cultural changes for effectively managing resources in a virtual environment Use a holistic approach when deploying virtual server infrastructure, including servers, infrastructure, applications and desktops Virtualization interoperability Four key principles in virtualization

29. Desktop Virtualization Application Virtualization Presentation Virtualization Server/Desktop Virtualization A comprehensive set of virtualization products, from the data center to desktop assets – both virtual and physical – are managed from a single platform Microsoft Virtualization Solutions Centralized Desktop "Virtualization without good management is more dangerous than not using virtualization in the first place" Thomas Bittman, Gartner

30. Choice in server virtualization platform Workload (de)-virtualization toolbox Virtual disaster recovery Constant resource / workload optimisation Orchestration of different virtualization technologies optimises the use of physical and virtual resources in the data center Novell virtualization products ZENworks Orchestrator

31. Microsoft and Novell have built software adapters that translate APIs and enhance performance between our respective virtualization technologies. SUSE Linux Enterprise Server is the best Linux guest to run enlightened on Windows Server 2008 Hyper-V. SUSE Linux Enterprise Server ApplicationLayer Microsoft Hyper-V Guest VM adapter APIAPI APIAPI Virtualization Scenario Example Innovation through partnership OS Level Server virtualization Architecture Windows Server 2008

32. “Designed for Windows” Server Hardware Windows Hyper-V (hypervisor) ‏ Hyper-V Architecture Interop with SUSE Linux Guest Provided by: OS MS / XenSource / Novell ISV/IHV/OEM Hyper-V Windows Server 2003, 2008 Applications Windows Server 2008 Parent partition Kernel mode User mode Applications Child partitions virtualization stack Applications Windows kernel VSC VSC VMBusVMBusEmulation Non hypervisor aware OS VMBus SUSE Enterprise Linux kernel Hypercall adapter Linux VSCs WMI provider VM service VM Worker Process

33. Customer Benefits of Integrated Virtualization Progression towards Dynamic IT will Reduce Cost, Improve Service Levels, and Drive Agility …and virtualization technologies help the progression… Managed IT infrastructure with limited automation and knowledge capture EFFICIENT COST CENTER Fully automated management dynamic resource usage, business linked SLAs; knowledge capture automated and use automated STRATEGIC ASSET Managed and consolidated IT infrastructure with extensive automation; knowledge captured and reused BUSINESS ENABLER Reduce costs Test and development Server consolidation Application compatibility Increase service levels Back-up and recovery Integrated management Drive agility Dynamic provisioning Self-managing systems Uncoordinated, manual infrastructure COST CENTER Basic Standardized Rationalized Dynamic

34. DEMO – on click Overview Virtualization Administration Conclusion

35. Break 15 minutes – Please take the time to meet colleagues and speak to our presenters

36. The Business Collaboration Customer Video

37. SUSE Linux Enterprise Server Support Certificates Microsoft Reselling SUSE Linux Enterprise Server certificates Microsoft endorses SUSE Linux Enterprise for customers who have chosen to run Windows and Linux in their data center Microsoft distributes certificates to customers that entitle them to redeem subscriptions and support from Novell for one or three year contracts Certificates, typically sold at a discount, can be leveraged for both physical and Virtual machine SUSE support Certificates are available in limited supply. Please discuss with Microsoft / Novell alliance team for more details or visit www.moreinterop.com

38. OEM Packaged Offer Slide - T Promotes Joint Offering of SUSE GUEST on WS2008 HOST

39. Insert optional partner slides (3 max) Partner should include slides on: How this partnership enhances their business How to purchase the solution Partner support offerings for the solution

40. Microsoft/Novell delivering Customers asked for Microsoft and open source community to work together Microsoft/Novell collaboration to build bridges between two worlds Solutions for better Microsoft and open source interoperability Better Windows and SUSE Linux Better Windows and SUSE Linux Enterprise interoperability Enterprise interoperability Better cross-virtualization support Better cross-virtualization support Microsoft Office and OpenOffice Microsoft Office and OpenOffice document interoperability document interoperability Joint interoperability lab Joint interoperability lab Cooperation on IP issues Patent assurances for both Microsoft and Novell customers One-call support Microsoft/Novell joint support for solutions Lower costs for cross-platform integration Microsoft and Novell working together to address Windows/Linux integration What this means for customers

41. Resources ●http://www.moreinterop.com/ ●http://www.moreinterop.com/hyperv/ ●www.microsoft.com/windowsserver2008/ ●www.microsoft.com/virtualization/ ●www.novell.com/linux/ ●www.novell.com/virtualization/

42. © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista 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.