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Windows Server 2012 for Hosting Service Providers

Windows Server 2012 for Hosting Service Providers . Prepared for PROSPECT NAME/COMPANY Presented by YOUR NAME/COMPANY Date PRESENTATION DATE. Introduction. [Your company name and brief overview] [Brief value proposition… i.e. “Monetize the cloud with Microsoft Platform + Desktop Hosting

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Windows Server 2012 for Hosting Service Providers

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  1. Windows Server 2012for Hosting Service Providers Prepared for PROSPECT NAME/COMPANY Presented by YOUR NAME/COMPANY Date PRESENTATION DATE

  2. Introduction • [Your company name and brief overview] • [Brief value proposition… i.e. “Monetize the cloud with Microsoft Platform + Desktop Hosting • (Note: there will be room later to talk about specific offers)]

  3. Agenda • The Opportunity • Hosting Offers Powered by Microsoft • Windows Server 2012 for Hosting Service Providers • Comprehensive Cloud Platform • Cost Efficiency • Expanded Services • Windows Server 2012 Licensing • Next Steps

  4. Hosting Leads Shift to Cloud • 1/3 of data will reside on the cloud by 2020 Server Instances Install Base (Physical + Virtual) • Hosting growth is 3Xthat of on-premises HOSTED THE OPPORTUNITY • Off-premises • instances will grow 90% • between • now & 2015 • Desktop Hosting grows to $5.6b • by 2016 Source: Microsoft, Spring 2012

  5. Partner Momentumwith Windows Server 2012 & System Center 2012 50+ Industry leading partners are already building services with our newest technologies

  6. Your Customer Offers Powered by Microsoft Database Hosting Application Hosting Service Provider Scenarios Desktop Hosting Web Hosting VM Hosting • Websites as a Service • SQL Database Hosted • Database-as-a-Service • Windows Server Hosted End Customer Offers • Business Apps • Productivity Suite Apps: • Unified Communication • Content Management and Collaboration • Exchange • Hosted Desktop and apps • High Availability Target Customers Corporate Enterprise Small and medium business enterprise

  7. Windows Server 2012: What’s NewDesigned for Hosting Service Providers to drive lower infrastructure TCO and deliver new business opportunities Cost Efficiency Expanded Services Comprehensive Cloud Platform Top Features for Service Providers 1 2 3 4 5 Disaster Recovery with Hyper-V Replica Web-Farm Scalability with IIS8 Network Virtualization VM Scalability & Performance Storage Spaces 6 7 9 10 8 Live Storage Migration & Shared Nothing Live Migration RDS Improvements for Desktop Hosting Granular Resource Metering Hyper-V Extensible Switch Data De-Duplication

  8. Windows Server 2012 & Hyper-V Reviews “Microsoft a Leader in x86 Server Virtualization Infrastructure" Gartner Magic Quadrant, 2011 “2012 will be VMware’s last year as king of the hill” Al Gillen – IDC Source: Worldwide Systems Infrastructure Software Top 10 Predictions- Dec. 2011 “Microsoft has grasped the fundamental truth about the transition to cloud.” Richard Fichera - Forrester Research “Poised against the current features of VMware and one-upped.” Tom Henderson - IT World “Microsoft claims 300 new features… we wonder whether the marketing guys left off a zero.” Brian Chee and Doug Dineley - InfoWorld

  9. Comprehensive Cloud Platform

  10. Comprehensive Cloud PlatformBuilt and designed for Hosting Service Providers VM Hosting Database Hosting Application Hosting Web Hosting Desktop Hosting Foundation for Hosting Service Provider Offers Windows Server 2012 Web Applications Remote Desktop Services ServiceDelivery & Automation Virtualization Networking Storage Management Application Management Availability Scalability Security Infrastructure Management Hardware Computer Storage (File/Block) Network

  11. Microsoft + Linux • Linux runs as a first-class guest on Windows Server Hyper-V • Develop apps for both Linux and Windows (CoApp) • Supported on Windows Virtual Machines (CentOS, openSUSE, SUSE, Ubuntu) “Microsoft is playing quite nicely with Linux and other open source tools. “ -Robert McMillan, Wired Enterprise

  12. Cost Efficiency

  13. Windows Server 2012 Lowers Infrastructure Costs for Hosting • Scalability • More scalability per server • More VMs per server • 32x increase in virtual disk size per VM • 2.5X increase to 160 logical processor support • Flexible Storage • SAN-like performance on commodity HW • Lower-cost storage via Storage Spaces & Pools • SMB & Fibre Channel improvements • De-duplication • Improved SAN support • Dynamic Network • New functionality and reduced management overhead • Extensible Switch • IP mobility • Security • New QoS features • Automated Management • Management savings through automation • 2000 new Windows PowerShell cmdlets • Cluster update management • Integration with System Center • Improved Web Server • More websites per server • NUMA Aware Scalability • Simplified SSL management • Designed for scale-out • Multi-Tenancy • Reduced management costs • Tenant isolation • More easily move VMs across premises • Resource Metering

  14. Better Margins with Microsoft vs. VMware • Hosting Revenue and Margins for a Single VM Rented for 365 Days Per VM You can charge, $1,051annual revenue (VM with 2GB RAM @ $0.12/hr) Microsoft Potential Service Provider Profit SPLA Core Infrastructure Suite Cost VMware $851 $1,009 Potential Service Provider Profit VMware Service Provider Program (VSPP) 3.0 Premier Cost VMware Takes 15.1%of revenue • Microsoft vs. VMware Annual Licensing Costs for a single VM rented for 365 days based on a 50 Server Deployment, with 2GB per VM and 2400 VM instancesat maximum capacity • Comparison Windows Server + System Center for application, OS & HW management running on either Hyper-V or VMware ESX More margin $159 MS Takes 4% of revenue $42 $42 Microsoft VMware

  15. Expanded Services

  16. Expanded ServicesFor Hosting Service Providers Multiple customer offers powered by Microsoft Single Infrastructure Platform for a Rich Set of Offers Build a single foundation for all your offers with Windows Server and System Center Optimize your deployment for physical, virtual, shared, or dedicated offers Integrate with heterogeneous platforms, operating systems, and applications 2 1 Cross sell to grow your business • Add managed services and premium SLAs on top of your core customer offers • Lead with commodity Website and VM Hosting offersand cross sell to more services or higher margin services Foundation for Future Growth 3 • Easy to enable, deploy, and manage • Extensible by design, including open source APIs • Unlimited virtualization and end-to-end management simplifies and lowers licensing costs

  17. Expanded Business Opportunities New Hosted Business Opportunities with Windows Server 2012 VM Hosting Database Hosting Application Hosting Web Hosting Desktop Hosting Cost Efficiency Expanded Services Comprehensive Cloud Platform

  18. Web Hosting Market trend: The estimated market size of Website hosting and maintenance in 2012 is $48B and a CAGR of 8% over the next three years1. WebMatrix 2 - A FREE, simple and powerful web development tool Web Application Gallery Providing developers access to the latest version of the most popular web apps Web Hosting Gallery Driving customers to service provider’s businesses from microsoft.com Web with Benefits Campaign Available to help service providers attract new customers Benefit for those who use WebMatrix2to develop websites Keep WebMatrix2 customers coming back with an easy solution for hosting their sites www.microsoft.com/web/webmatrix/next/ 1Source: AMI-Partners; www.ami-partners.com, 2H2011 Routes to Market Report

  19. Virtual Machine Hosting Market trend: Off-premises instances will grow 90% between 2012 – 20151. • Why Microsoft? • Fastest growing hypervisor and management platform • Huge installed base running on Windows Server means potential revenue opportunities • No hidden costs: VMware tax and unlimited virtualization provides higher profit opportunities • Huge customer install base as well as fast growing Software-as-a-Service market drives the demand for hosted Windows servers VM Hosting 1Microsoft Internal Analysis, Spring 2012

  20. Market trend:By 2015, the estimated market size for Desktop Virtualization is $5.6B and an estimated 75% in session-based computing1. Desktop Hosting Desktop Hosting • Why Microsoft? • Comprehensive end to-end solutions • Access from any device • Up-selling opportunity based on the large Hosted Exchange installed base • High growth opportunity • High revenue and margin • Built-in customer loyalty (high switching costs) 1451Research 2012

  21. Market trend: The total data platform market will reach to $39.9B by 2012. Cloud (Database-as-a-Service) + Hosted Database market will reach $4B in FY151. Database Hosting • Why Microsoft? • SQL Server 2012 is a comprehensive cloud-ready information platform • 99.9999% uptime and mission critical data protection • Up to 10-100x improvements in performance • The most up-to-date software without the need for expensive upgrades or lengthy service pack updates Database Hosting 1Microsoft Internal Analysis, 2012

  22. Simplified Licensing

  23. Windows Server 2012 Under SPLA Windows Server2012 Essentials Windows Server2012 Standard Windows Server2012 Datacenter Flexible, Affordable, Easy to Use Server Solution Highly Virtualized Service Provider Cloud Low Density Service Provider Cloud

  24. Key Changes • Licensing • Per Processor license model for all editions • Windows Server 2012 Essentials: Limited to 25 users • Pricing • Windows Server 2012 Datacenter – same price per processor • Windows Server 2012 Standard – price decreases 14% per processor • Core Infrastructure Server Suite Standard (WS+SC) – price decreases 7% per processor • Discontinued Product Editions • Windows Server Enterprise, Web and HPC, OEM • Windows Server SAL removed for all editions • Small Business Server editions *Note: Pricing is for illustrative purposes only, final price determined by reseller

  25. Windows Server Editions in SPLA+ Today Tomorrow Small Business Server Window Server Window Server Windows Server 2008 R2 Datacenter Windows Web Server 2008 R2 Windows Small Business Server 2011 Essentials Windows Server 2012 Datacenter Windows Small Business Server 2011 Standard Windows Server 2012 Standard Windows Server 2008 R2 Enterprise Windows Server 2008 R2 HPC Edition Windows Small Business Server 2011 Premium Add-On Windows Server 2012 Essentials Windows Server 2008 R2 Standard

  26. Windows Server Transition Path Today Tomorrow Windows Server 2008 R2 Datacenter Windows Server 2012 Datacenter Windows Server 2012 Datacenter Windows Server 2008 R2 Enterprise Windows Server 2012 Standard Windows Server 2008 R2 Standard Windows Web Server 2008 R2 Windows Server 2012 Standard Windows Server 2008 R2 HPC Edition Windows Server 2012 Standard Microsoft Hyper-V Server (not available in SPLA) Microsoft Hyper-V Server FREE

  27. Core Infrastructure Suite (CIS) Saves You MoneyOne license for your entire service provider cloud infrastructureqq 19% Savings with CIS $32 $104 $84 CIS Datacenter Ideal for highly virtualized offers $72 or CIS Standard Ideal for non-virtualized & dedicated server offers *For illustration purposes – prices may vary, contact your SPLA reseller for updated pricing Core Infrastructure Suite Windows Server & System Center separate purchase Windows Server Datacenter System Center Server Management Suite Datacenter Core Infrastructure Server Suite Datacenter

  28. Better Margins than VMware,Especially as You Grow $1,248,600 VMware • Microsoft is 1/4 the cost of VMware’s RAM-based pricing $884,400 VMware 1/12 the cost 1/9 the cost $481,200 VMware 1/4 the cost $99,884 Microsoft $99,884 Microsoft $99,884 Microsoft 96 GB RAM per Server for 50 servers • 192 GB RAM per server • for 50 servers • 288 GB RAM per server • for 50 servers Microsoft vs. VMware Annual Costs for a 50 Server Deployment, 2GB per VM with either 2400, 4800 or 7200 2 GB VM instancesat maximum capacity Comparison Windows Server + System Center for application, OS & HW management running on either Hyper-V or VMware ESX VMware Service Provider Program (VSPP) 3.0 Premier cost SPLA Core Infrastructure Suite Cost

  29. Resources and Call to Actions

  30. Action Plan Deploy Launch Scale • Start your journey • Learn more about windows Server 2012 • Completed Architecture • Deploy new service • Test before taking to Market • Take offer to market • Train your team on the new services offered • Utilize appropriate Partner Program as applicable • Determine your target market • Launch offer using planned digital media, Search Engine Optimization (SEO), and call lists to target your audience • Invest in Go-To-Market to Grow Your Business! • Use MPN resources to help deploy a campaign to your target market • Measure effectiveness and adjust accordingly

  31. Resources 1 2 3 4 5 • PLAN • Hosting Competency • Windows Server® 2012 with Hyper-V™ & System Center 2012 • System Center 2012 Community Evaluation Program • Hosting Landing Page • 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

  32. 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… Differentiate You… 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

  33. Thank You

  34. Appendix

  35. Appendix

  36. Flexible Storage Solutions with Storage Spaces or or Single discrete system Clustered discrete systems 2 node cluster + storage in a Box (CiB) 4 node cluster + storage in a Box Shared SAS JBOD External Storage Array Small Business and Branch Midmarket and Departmental Enterprise and Hosted Cloud

  37. Windows Server 2012: Resource Metering for SPs Features Metrics • Uses resource pools • Is compatible with all Hyper-V operations • Is unaffected by virtual machine movement • Uses Network Metering Port ACLs • Average CPU use • Average memory use • Minimum memory use • Maximum memory use • Maximum disk allocation • Incoming network traffic • Outgoing network traffic A two-tenant environment built with Hyper-V in Windows Server 2012

  38. Extending the Hyper-V Extensible Switch for New Capabilities • Two platforms for extensions • NDIS filter drivers • WFP callout drivers • You can extend or replace • Ingress filtering • Destination lookup and forwarding • Egress filtering • Other features • Extension monitoring • Extension uniqueness • Extensions that learn virtual machine life cycle • Extensions that can veto state changes • Multiple extensions on same switch Architecture of the Hyper-V Extensible Switch

  39. Hyper-V Extensible Switch Extension Types

  40. Multitenant Security and Isolation • Hyper-V Extensible Switch • New feature • Handles network traffic between • Virtual machines • The external network • The host operating system • Layer-2 virtual interface • Programmatically managed • Extensible

  41. Multi-tenant Security and Isolation • Private Virtual LAN (PVLAN) • Isolate virtual machines from other virtual machines in your datacenter. • Create community groups of virtual machines that can exchange data packets. Example PVLAN: ‒ Primary VLAN ID is 2 ‒ Secondary VLAN IDs are 4 and 5

  42. Scale beyond VLANs with Hyper-V Network Virtualization • How network virtualization works • Two IP addresses for each virtual machine • General Routing Encapsulation (GRE) • IP address rewrite • Policy management server • Problems solved • Removes VLAN constraints • Eliminates hierarchical IP address assignment for virtual machines

  43. Scalability Improvements Hypervisor improvements to address high density and scale-up scenarios Enhanced failover clustering ensures high availability at scale

  44. Storage Improvements Storage Spaces and Storage Pools: Pooled storage that supports commodity HW and is easily managed and expanded. Shared Nothing Live Migration of VMs without requirement of shared storage Continuously available file server: Benefits of a SAN out-of-the-box Rapid VM Provisioning & Migration with ODX and intelligent storage arrays Support for VMware ESX virtual machine storage via NFS data stores De-duplication & thin-provisioning out-of-the-box

  45. Networking Improvements • Network Virtualization • IP Mobility: Move workloads without changing network configurations or reconfiguring physical networks Extensible Switch Improved virtual machine traffic isolation, prioritization, security, usage metering, and trouble shooting. Build your own extensions for the offers and SLAs you deliver to customers! NIC Teaming out-of-the-box Improved fault tolerance, traffic management, and works for all vendors Quality of Service Guarantee minimum services bandwidth while maximizing network throughput

  46. Network Isolation for Multi-tenancy • Extensible Switch provides isolation for multi-tenancy • Private virtual local area network (PVLAN) • Virtual port access control lists (ACLs) • Virtual LAN (VLAN) trunk mode support • Protection against Address Resolution Protocol (ARP) poisoning, spoofing, and DHCP snooping • Resource Metering to prevent noisy neighbors & enable premium services • Average CPU usage, measured in megahertz over a period of time • Minimum & Maximum memory usage • Maximum amount of disk space allocated to a virtual machine • Total incoming / outgoing network traffic, measured in megabytes, for a virtual network adapter • IIS Sandboxing & CPU metering • Website isolation for improved security • SLA improvements via CPU metering • Storage Spaces • ACLs provide isolation for multi-tenancy

  47. Automated Management • PowerShell 3.0: Automation Engine • Simplifies administration of multiple servers, even in multiple sites • Offers path toward full automation • Makes cmdlets easier to learn • Makes new scripts easier to write • Cluster Aware Update Management • Eliminates downtime associated with cluster updating • Simplifies cluster updates through configurable automation • Transparent to users and hosted applications • Extensible to install even non-Windows software updates through custom plug-ins • Integration with System Center 2012 • Comprehensive deployment and updating for virtualized and physical server deployments • Monitoring of hardware, operating systems and applications! • End-to-end automation

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