Scott Ottaway WW Industry Directory – Cloud Platforms Operator Channels B2B Michael Chacón Licensing Program Manager Ope

1. Scott OttawayWW Industry Directory – Cloud PlatformsOperator Channels B2BMichael ChacónLicensing Program ManagerOperator Channels B2B SystemCenter 2012 Service Provider Value Proposition & Licensing Overview January 17, 2012

2. Target Audience and Briefing Objectives Target Audience: Hosting Service Providers using the Service Provider Licensing Agreement (SPLA) Overview of System Center 2012 Product Overview of System Center 2012 Licensing Changes

3. Service Providers are Critical Partners for Microsoft • Cloud instances are growing at 45% CAGR • Hosting is growing 4x faster than Enterprise • 19% of new Private Cloud instances will be at Hoster datacenters by 2014 Cloud SPs will account for >20% of combined server and storage spending by 2014

4. Microsoft Cloud VisionCommon experience across all clouds Customer Private Cloud Microsoft Public Cloud Service Provider Cloud CommonTechnologies Management ▪ Development Identity ▪ Virtualization ▪

5. Microsoft Cloud Vision Common experience across all clouds Customer Private Cloud Service Provider Cloud Microsoft Public Cloud CommonTechnologies Management ▪ Development Identity ▪ Virtualization ▪ Management

6. System Center: Built for the Future. Ready Now. Capabilities Components new App Controller Application Insight Service Management Service Manager new IT Process Automation Orchestrator Virtual Workload Provisioning Virtual Machine Manager Best-in-class management for Service Provider Clouds Data Protection Manager Backup & Recovery Monitoring Operations Manager Configuration Manager Configuration

7. System Center 2012: What’s New Best-in-class management for Service Provider Clouds Heterogeneous Support Best-in-Class Windows Management Productive Infrastructure Top Features of System Center 2012 Manage HW, Hypervisor, OS and Apps Deep Management Insight for Windows, Microsoft Apps & Non-Microsoft Apps Deep Application Insight Process Automation Multi-hypervisor Support Network Monitoring Service Templates Self-Service Provisioning

8. Grow Your Business with System Center 2012 Service Provider Opportunities • Secure Virtual Machine Hosting • Server Management • Application Management • Website Management • Desktop Management Heterogeneous Support Best-in-Class Windows Management Productive Infrastructure

9. System Center 2012 Product Lineup for SPLA • Client Management Suite

10. System Center 2012 Key Licensing Changes • Processor Model: • Processor licenses replace SALs for server management scenarios Simple Licensing: 5 product offers rather than many Consistent Capabilities: 2 server editions deliver consistent capabilities

11. System Center 2012 Software Componentsonly these components – virtualization is the onlydifference 2 Editions – Same Components For Highly Virtualized Environments For Lightly or non-Virtualized Environments

12. System Center 2012 Server Management Licensing Processor Model • Datacenter Edition: 1-proc license, manage unlimited OSEs • Standard Edition: 1-proc license, manage 1 OSE Simple Licensing Key Licensing Takeaways • Server management software included Consistent Capabilities • All components plus ability to manage high end workloads • SQL technology included

13. System Center 2012 Client Management Licensing No change to SAL license model for managing client OSEs • Client Management Suite • System Center Configuration Manager • Virtual Machine Manager • Service Manager • Operations Manager • Data Protection Manager • Orchestrator • Configuration Manager includes Virtual Machine Manager Key Licensing Takeaways Forefront Endpoint Protection joinsSystem Center 2012 family of products

14. System Center 2012 Transition Timeline H1 Calendar Year 2012 January 2012 January 2013 System Center SKUs on the price list before GA stay on the price list during 2012 except SMSE & SMSD Processor Licenses • Processor Licenses • Core Infrastructure Server Datacenter • Subscriber Access Licenses • Single Standard Client SAL • (with or without SQL Technology) • Single Standard Server SAL • (with or without SQL Technology) • Single Enterprise Server SAL • (with or without SQL Technology) • Server Management Suite Enterprise (SMSE) • Server Management Suite Datacenter (SMSD) Core Infrastructure Server Standard NEW Core Infrastructure Server Datacenter • Subscriber Access Licenses for Clients • Client Management Suite

15. Datacenter Edition is the Best Value for Service Provider Clouds Server OSE Server OSE Server OSE Server OSE Physical OSE Best value Server OSE Server OSE Server OSE Physical OSE Best value

16. Core Infrastructure Suite (CIS) is the Best Value CIS licenses all the platform technology required for a service provider cloud Core Infrastructure Suite • CIS Software Included: • Windows Server • System Center Datacenter Simplicity: License the well managed and protected datacenter together on a per processor basis with unlimited virtualization rights. Cost Savings: Acquire a well managed and protected cloud at a lower cost. Highly Virtualized

17. Core Infrastructure Suite Cost SavingsGet the entire System Center Suite for only 16% more than Windows Server Datacenter 16% 20% Customers purchasing Core Infrastructure Suite per-processor licenses saves 20% over purchasing products separately Core Infrastructure Suite Value at Lower CostOnly 16% more over Windows Server Datacenter standalone

18. Section III – Resources & Calls to Action

19. Microsoft Commitment & InvestmentHuge momentum for partners to build Private Cloud practice Drive Strong Awareness & Customer Demand Generation Global Advertisement Partner Programs & Investments Private Cloud Launch Goal: Fundamentally change industry momentum by winning Private Cloud New: Major H2 Execution Journey to the Cloud Goal: Drive Demand and optimize opportunities New: Private Cloud Immersion Hyper-V Cloud Accelerate Resources for Microsoft Cloud assessments, proof of concept, pilots, and deployments Deployment Planning Services Drive more sales by evaluating customer environments and getting monetary benefit by using customer SA hours Cloud Assessment Tool Lead generation tool for developing and implementing Private and Public Cloud solutions Fast Track Partners Pre-configured servers from Fast Track Partners help you get your private cloud solutions deployed faster Service Provider Cloud Toolkit Guidance to help establish SLAs and create portals that customers can use to provision, manage, and monitor their infrastructure Microsoft Hosting Days Join other hosting providers in discovering new ways to build and grow your hosting business.

20. Resources 1 2 3 4 5 • PLAN • Hosting Resources on MPN • Windows Server® 2008 R2 SP1 with Hyper-V™ & System Center 2012 • System Center 2012 Community Evaluation Program • Hosting Deployment Accelerator • Hosting Days Events • ENABLE • Hosting Competency • Virtualization Competency • Identity and Security Competency • Systems Management Competency • Server Platform Competency • Microsoft Action Pack Solution Provider • CREATE DEMAND • Customer Cloud Assessment Tool • Private Cloud Campaign Materials • Pinpoint • SELL • License Mobility through Software Assurance • Microsoft Services Provider License Agreement (SPLA) • DEPLOY • Service Provider Cloud Toolkit • Deployment Planning Services • Microsoft Private Cloud Fast Track • Hyper-V™ Deployment Guides • Security Compliance Manager For more information on System Center 2012, visit the Microsoft Server and Cloud Platform site

21. Why Microsoft needs Service Providers You… You… • Continue to build and deliver cloud services to provide agile and cost effective solutions for your customers • Are the trusted advisor for customers to navigate the cloud landscape Service Build Partners You… You… Differentiate Advise • Provide differentiated services based on SLAs, location, customization, and market verticals • Provide support and self-service tools for customers Sell You… • Create recurring revenue streams by providing value-added solutions, and up-selling/cross-selling with attached services

22. Calls to Action Learn more about the new features in System Center 2012 Visit: www.microsoft.com/systemcenter Better understand System Center 2012 licensing Talk to your Account Manager or Reseller about the value of the Core Infrastructure Suite Download the latest product and deploy System Center 2012 in a test environment today

23. © 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.

24. Appendix – System Center 2012Key Features and Service Provider Benefits Note: Use these slides for TDM audience presentations

25. System Center: Built for the Future. Ready Now. Capabilities Components new App Controller Application Insight Service Management Service Manager new IT Process Automation Orchestrator Virtual Workload Provisioning Virtual Machine Manager Manage Private and Public Cloud applications and services with a common solution Data Protection Manager Backup & Recovery Monitoring Operations Manager Configuration Manager Configuration

26. BEST IN CLASS WINDOWS MANAGEMENT HETEROGENEOUS SUPPORT PRODUCTIVE INFRASTRUCTURE Deliver Best Cloud Services with Productive Infrastructure Partner Opportunities & Benefits System Center 2012 • Process automation • Integrate and extend your existing toolsets and build flexible workflows (or runbooks) across multiple systems • 26 Integration Packs out of box to interoperate with toolsets from HP, BMC, CA, EMC and VMware • Network Monitoring Simplify and standardize your datacenter with a flexible process automation platform Allocate/delegate this pooled fabric to your customers in a flexible yet controlled manner • Self-service infrastructure • Pool and abstract datacenter resources and deliver self-service infrastructure • Heterogeneous support • Multi-hypervisor, cross-platform monitoring • Integrated automation across management toolsets Maximize existing datacenter investments with cross-platform manageability

27. BEST IN CLASS WINDOWS MANAGEMENT HETEROGENEOUS SUPPORT PRODUCTIVE INFRASTRUCTURE Seamless Management through a Single Pane of Glass Self-service infrastructure Heterogeneous Environment Management Process Automation Your customers can request additional cloud capacity in self-service mode Flexibly add capacity to the customers through a Service Catalog request 200 400 20 Platinum Marketing Submit Submit Anticipating holiday season shopping spike

28. BEST IN CLASS WINDOWS MANAGEMENT HETEROGENEOUS SUPPORT PRODUCTIVE INFRASTRUCTURE Best-in-Class Windows Management System Center 2012 Partner Opportunities & Benefits Reduce administrative effort and expense by dramatically simplifying application servicing with image-based configuration and management • Deep application monitoring and diagnosis • Improve availability and performance with deep application monitoring and diagnosis • Comprehensive end-to-end manageability • Best-of-breed management for Windows infrastructure and workloads • Remediate application issues faster and improve SLAs Maximize your datacenter investments with integrated management and automation across whole stack • Service-centric approach • Optimize application lifecycle with service templates and self service • Application and service owners to deploy and manage services on private clouds Standardize end-to-end application lifecycle and increase the depth and breadth of your services

29. BEST IN CLASS WINDOWS MANAGEMENT HETEROGENEOUS SUPPORT PRODUCTIVE INFRASTRUCTURE End-to-End Deep Insight from Infrastructure to Applications Deep App Monitoring and Diagnosis Service Centric Approach Comprehensive App Manageability Data Web App Scale Out Rules Scale Out Rules Scale Out Rules Service Template - Multi-Tier .Net App IIS SQL App Server OS Profile OS Profile OS Profile App Profile App Profile App Profile HW Profile HW Profile HW Profile W2K8.VHD OS Settings MSDeploy package and configuration settings App-V package and configuration settings SQL DAC package and configuration settings Deep application insight, and management of services as well as virtual machines

30. BEST IN CLASS WINDOWS MANAGEMENT HETEROGENEOUS SUPPORT PRODUCTIVE INFRASTRUCTURE Service-Centric Management Easily Upgrade Applications Service template (Multi-tier .NET applications) Standardized Application Provisioning Web tier Application tier Data tier Scale out & health policy Scale out & health policy Scale out & health policy SQL IIS Application server Server Application Virtualization HW profile OS profile App profile HW profile OS profile App profile HW profile OS profile App profile .NET OS App Ops App Ops DC Admin Java

31. BEST IN CLASS WINDOWS MANAGEMENT HETEROGENEOUS SUPPORT PRODUCTIVE INFRASTRUCTURE Comprehensive Management of Heterogeneous IT Environments System Center 2012 Partner Opportunities & Benefits Maximize your datacenter investments with cross-platform manageability • Run and monitor multiple operating systems • Drive process automation and configuration across platforms and toolsets • Develop applications using multiple application toolsets • Manage multiple hypervisors (MS, VMware, & Citrix) Improve service reliability across multiple management tools and systems Enables self-service managing everything from infrastructure to applications across multiple platforms Offer to your customers best-of-breed management for Windows infrastructure and workloads

32. BEST IN CLASS WINDOWS MANAGEMENT HETEROGENEOUS SUPPORT PRODUCTIVE INFRASTRUCTURE System Center 2012 Integrates Existing Tools • Manage through a single pane of glass • Integrated automation Application Frameworks • 3rd Party • Management Operating Systems Multi- hypervisor Management Hyper-v cloud Fast track

33. Heterogeneousmonitoring BEST IN CLASS WINDOWS MANAGEMENT HETEROGENEOUS SUPPORT PRODUCTIVE INFRASTRUCTURE SQL Server Performance Dashboard: OperationsManagerDW Monitor Your Datacenter Infrastructure with a Single Pane of Glass SQL Server Availability over last 24 hours SQL CPU Utilization over last 24 hours SQL Memory Usage in KB Disk Storage Total Memory: 50,000 KB Data Files: 17.6 GB 66% Log Files: 6.93 GB 2% SQL Server Properties Total Memory Used on Server 80%

34. System Center 2012 – What’s New Benefits New for System Center 2012 • Improved Settings management with remediation • Integrated anti-malware with System Center Endpoint Protection • Delegated Administration • Improved Settings management with remediation • Integrated anti-malware with System Center Endpoint Protection • Delegated Administration Configuration Manager • Centralized management of DPM servers • Role based administration • Item-level recovery for virtual machines • Save time with consolidated management server console • Secure access for the broader IT team • Quicker time to recovery Data Protection Manager

35. System Center 2012 – What’s New (cont) New for System Center 2012 Benefits • Increase App Owner agility with self-service interface • Save time by bringing together all delegated infrastructure • Improve reliability by deploying template-based services • Role-based access for the App Owner • Single view of delegated resources across Private & Public Clouds • Deploy and manage services as well as virtual machines NEW! App Controller • Increase organizational agility with customized service offerings • Improve corporate compliance through process management • Improve business intelligence through customized reporting • Service Catalog • Self Service Request Portal • Release & SLA Management • Data Warehouse Service Manager • Performance Management • Monitoring across Public and Private Clouds • Improved UNIX & Linux support • Network Monitoring • Customizable dashboards • Simplify management with visibility across the stack • Decrease time to resolution with deep application insight • Improve insights with personalized reporting Operations Manager

36. System Center 2012 – What’s New (cont) New for System Center 2012 Benefits • Lower costs and increase reliability by automating repetitive tasks • Simplify heterogeneous datacenter management • Workflow automation • Third party integration • Simple design of custom workflow runbooks and integration packs • Publish-Subscribe Data Bus NEW! Orchestrator • Preserve and optimize existing infrastructure investments • Improve infrastructure SLAs • Save time with standardized service creation and upgrades • Reduce costs through power optimization • Aggregate, standardize and delegate datacenter resources • Multi-vendor hypervisor support • Service Templates • Server Application Virtualization • Dynamic Optimization Virtual Machine Manager