Microsoft Virtualization Opportunity

1. Microsoft Virtualization Opportunity

2. Microsoft server virtualization is a strategic growth opportunity for your business • The Server Virtualization market is rapidly growing… • … with new (and different) customers driving this growth • In this segment Microsoft has an advantage • A “Virtualization Practice” is better than a “VMware Practice” • “This next wave in adoption is what IDC terms Virtualization 2.0, and it will be supported not just by the Global 2000 but also by the Global 200,000.” – IDC, Aug 2008 • “Cost stands out as the biggest inhibitor to companies virtualizing these remaining systems” – IDC, Aug 2008 • Growth will be coming from more price sensitive customers (e.g. Mid-Market) and scenarios • Being technology agnostic allows you to act as a trusted advisor to your customer • A Microsoft Virtualization solution enables you greater access to follow-on projects (such as integrated mgmt, O/S and application upgrades, desktop virtualization, BPIO) • You have the best ROI on a full virtualization offering that covers all opportunity scenarios • Microsoft Virtualization enables you to sell solutions to customers that will choose the partner that offers them the lower-cost, feature-parity Microsoft solution • Microsoft costs significantly less than VMware… • … and is now at technical parity with VMware • Microsoft is a familiar vendor for these new customers • Resulting in Microsoft gaining share % of x86 Workloads Virtualized VMware Microsoft WW Spending on Server Virtualization Software ($B) Server Virt. Market Share (%) • Microsoft will support you with demand generation and evidence if you invest in growing your Microsoft Virtualization capabilities Source: Gartner, IDC, 2009, 2010

3. The market has moved into the next phase of server virtualization growth - “Focus on Affordability” • Server Virtualization on the Technology Adoption Lifecycle • The Last Phase • Early Adopters • Large Enterprises • Price insensitive • Low volume, large size • The Next Phase • Early Majority through Mainstream • Mid-Market (smaller size, higher volume) • Cost/Price sensitive – “Affordable” MarketSize Early Adopter: 13.3%1 Early Majority: 49.9% Late Adopter: 32.1% Laggard: 4.9% Today Time • “This next wave in adoption is what IDC terms Virtualization 2.0, and it will be supported not just by the Global 2000 but also by the Global 200,000.” • – IDC, Aug 2008 • “To date, roughly 5% of the installed base of servers has been virtualized… with over 25 million servers that could potentially be virtualized as they are upgraded and refreshed.” • – IDC, Aug 2008 1: October 2009 IDC Server Virtualization Survey

4. Microsoft Virtualization is advantaged for this market and will win share • The top 5 reasons why customers haven’t virtualized…1 • ... are answered by Microsoft’s value proposition… • … resulting in Microsoft gaining share in the market • Cost/Budget • Institutional Resistance • Management servers/resources/monitoring • Application/ISV support • IT education/training • Microsoft Virtualization is 1/6th the cost of VMware2 • $150M Microsoft demand generation campaign • System Center for DC mgmt (physical & virtual) • Breadth of WS 2008 supported applications • Microsoft’s investment in training and education is unparalleled, including Microsoft Sales University and Sales Specialist program • “Growth in Hyper-V is inevitable. It wins with price sensitive customers, small customers, and customers new to virtualization.” • – US VMware Partner • “The market is shifting towards Hyper-V. 50% of customer ask for it now, compared to 20% a year ago .” • – UK VMware Partner VMware Market Share (%) Microsoft 1: “Top Server Virtualization Adoption Inhibitors” from Paths to Opportunity with Virtualization Solutions IDC, August 20082: http://www.microsoft.com/virtualization/en/us/cost-savings.aspx

5. To grow your practice, you must add Microsoft Server Virtualization capabilities

6. We believe your practice growth will be higher by adding a Microsoft-based Virtualization practice • We have built a model* that supports this assertion… • … which follows four simple propositions… • … and can be tailored to match your business expectations • VMware generate higher deal revenues and margins • … but the lower Microsoft cost allows you to sell more solutions… • … and the win rate with Microsoft is higher in the price sensitive segment… • … thus generating greater practice revenue and margin if you offer Microsoft Virtualization • We would love to engage with you to model your company-specific financial benefits of investing in Microsoft Virtualization capabilities • Full Disclosure: Depending upon your assumptions, our model could suggest that you invest in Microsoft and/or your VMware business! SCREENSHOT * Model built based on 30+ partner interviews from US, Canada, UK, Germany, Italy, and other countries

7. Next Steps • Prove the expected economic benefits • 1 • Agree on the joint Partner-Microsoft investment • 2 • Enroll into the Microsoft Virtualization competency • 3