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Heading to the Clouds: Private Labeling Hosted Services and Selling to Service Providers

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Heading to the Clouds: Private Labeling Hosted Services and Selling to Service Providers

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    1. Heading to the Clouds: Private Labeling Hosted Services and Selling to Service Providers/Hosters Training Overview June 12 1

    2. June 12 Heading to the Clouds: private Labeling Hosted Services and Selling toservice provider/hosters 2 Did you know that the Software-as-a-Service (SaaS) market is one of the fastest growing software market segments? Are you aware that HP offers a best-in-class SaaS solution for many of our marquee software products? Key reasons you should pay close attention to this training: SaaS is growing at 4x the rate of enterprise software. With an enabled channel, this means more revenue for you. Renewal rates are greater than 80%, and partners can participate in the revenue stream. Upsell rates are high – 1.75x the initial sale – based on historical sales data. SaaS is eligible for the 20% compensation uplift provided to the HP field and Software Direct sales teams on resale transactions. Today we are going to talk about the cloud computing revolution, explain exactly what it is and how resellers can play a critical role. This revolution is creating both long- and short-term opportunities for VARs like you—and for your customers. This training will focus on two important ways you can profit from these opportunities: By reselling (or “private labeling”) hosted solutions to small and mid-sized businesses, creating a steady, predictable, and very substantial monthly revenue stream for yourself—with virtually no upfront investment: AND By selling the pre-eminent hardware and software solutions needed by service providers/hosters, especially those who serve the SMB market. In both cases, your success begins with a clear understanding of the market, the forces driving it, its customers and prospects, and the changing landscape of services via the web. It also depends on offering the very best solutions to your potential customers. In this case, that means solutions specifically designed or configured for the SaaS market by two of technology’s most respected names: HP and Microsoft. Did you know that the Software-as-a-Service (SaaS) market is one of the fastest growing software market segments? Are you aware that HP offers a best-in-class SaaS solution for many of our marquee software products? Key reasons you should pay close attention to this training: SaaS is growing at 4x the rate of enterprise software. With an enabled channel, this means more revenue for you. Renewal rates are greater than 80%, and partners can participate in the revenue stream. Upsell rates are high – 1.75x the initial sale – based on historical sales data. SaaS is eligible for the 20% compensation uplift provided to the HP field and Software Direct sales teams on resale transactions. Today we are going to talk about the cloud computing revolution, explain exactly what it is and how resellers can play a critical role. This revolution is creating both long- and short-term opportunities for VARs like you—and for your customers. This training will focus on two important ways you can profit from these opportunities: By reselling (or “private labeling”) hosted solutions to small and mid-sized businesses, creating a steady, predictable, and very substantial monthly revenue stream for yourself—with virtually no upfront investment: AND By selling the pre-eminent hardware and software solutions needed by service providers/hosters, especially those who serve the SMB market. In both cases, your success begins with a clear understanding of the market, the forces driving it, its customers and prospects, and the changing landscape of services via the web. It also depends on offering the very best solutions to your potential customers. In this case, that means solutions specifically designed or configured for the SaaS market by two of technology’s most respected names: HP and Microsoft.

    3. Training objectives Broaden awareness Cloud computing SaaS Identify the market opportunity and VAR benefits Reselling private label services Selling to service providers/hosters Identify further resources June 12 3 The objectives for today’s training are to give you a high-level overview of cloud computing, Software-as-a-Service, and the benefits of reselling private label services. We will touch briefly on how to sell to service providers/hosters and show you how HP is leading the way to support you in this market opportunity. We will also provide you with a list of resources for you to be able to quickly move forward with exploring further and begin implementing these new opportunities. Let’s get started.The objectives for today’s training are to give you a high-level overview of cloud computing, Software-as-a-Service, and the benefits of reselling private label services. We will touch briefly on how to sell to service providers/hosters and show you how HP is leading the way to support you in this market opportunity. We will also provide you with a list of resources for you to be able to quickly move forward with exploring further and begin implementing these new opportunities. Let’s get started.

    4. First let’s take a look at Cloud Computing and SaaS (Software-as-a-Service) and identify the market opportunity and how this broadens the choices of solutions you can offer your customers.First let’s take a look at Cloud Computing and SaaS (Software-as-a-Service) and identify the market opportunity and how this broadens the choices of solutions you can offer your customers.

    5. “Cloud computing is changing the world.” -BusinessWeek CEO Guide to Technology, August 4, 2008 It’s not often that both the business and technology press, along with major consulting firms like IDC, Forrester, and Gartner agree that there is a revolution taking place right before our eyes. But that’s exactly what they say about a revolution called cloud computing. BusinessWeek flatly declares that cloud computing is ‘changing the world,’ creating ‘a fundamental shift in the way companies obtain software and computing capacity.’ BusinessWeek CEO Guide to Technology, August 4, 2008 It’s not often that both the business and technology press, along with major consulting firms like IDC, Forrester, and Gartner agree that there is a revolution taking place right before our eyes. But that’s exactly what they say about a revolution called cloud computing. BusinessWeek flatly declares that cloud computing is ‘changing the world,’ creating ‘a fundamental shift in the way companies obtain software and computing capacity.’ BusinessWeek CEO Guide to Technology, August 4, 2008

    6. What is cloud computing? Computing and services accessible over the Internet Distribution of hosted services through a distribution channel A paradigm shift in the industry Driven by the increasing complexity of technical services and growth of data Benefits: economies of time and money June 12 6 First, a little background. “Cloud computing” is a simple, Web-based way for any business to get as-needed technology ranging from extra server capacity to software–on-demand. In the past few years, the distribution of information technology (IT) has started to see a shift from hardware and software that is delivered by a reseller to a new model: The emerging distribution of hosted services through a distribution channel. This model is highly attractive due to an ever-increasing number of SMB customers who want to reap the benefits of enterprise-class software without being burdened by their associated hardware, software, and maintenance costs. Cloud computing is a very real paradigm shift for the industry. It’s a shift being driven by the increasing complexity of technical systems and the relentless growth of data that must be managed. Some 87 billion emails are drafted per day around the globe, the digital universe doubles every 18 months, and the number of network attached storage devices double every two years according to Thomas Hogan, Senior VP at HP. He adds, Yet some 80-85% of IT budgets go to operational maintenance. That’s the problem. Though there are challenges in moving to a multi-tenancy model, in security, in availability, cloud computing promises to help IT organizations dial back maintenance costs so they can spend on creating business value. The assumption here is that cloud computing services cost significantly less than traditional enterprise applications. First, a little background. “Cloud computing” is a simple, Web-based way for any business to get as-needed technology ranging from extra server capacity to software–on-demand. In the past few years, the distribution of information technology (IT) has started to see a shift from hardware and software that is delivered by a reseller to a new model: The emerging distribution of hosted services through a distribution channel. This model is highly attractive due to an ever-increasing number of SMB customers who want to reap the benefits of enterprise-class software without being burdened by their associated hardware, software, and maintenance costs. Cloud computing is a very real paradigm shift for the industry. It’s a shift being driven by the increasing complexity of technical systems and the relentless growth of data that must be managed. Some 87 billion emails are drafted per day around the globe, the digital universe doubles every 18 months, and the number of network attached storage devices double every two years according to Thomas Hogan, Senior VP at HP. He adds, Yet some 80-85% of IT budgets go to operational maintenance. That’s the problem. Though there are challenges in moving to a multi-tenancy model, in security, in availability, cloud computing promises to help IT organizations dial back maintenance costs so they can spend on creating business value. The assumption here is that cloud computing services cost significantly less than traditional enterprise applications.

    7. What do we mean by cloud? June 12 7 The cloud is a means by which global class, highly scalable and flexible services can be delivered and consumed over the internet through an as-needed, pay-per-use business model You can view cloud through the lens of a provider, and through the lens of the user – the consumer of the service, which might be a person at home using SnapFish to share and print photos. Or a small business owners who uses G-mail, or an IT person who is using a cloud-based help desk application When you look for what’s different, what’s new and disruptive about the cloud, we see 3 technology-related distinctions that represent a new business value: New access, where everything is delivered as a service. There are new software capabilities, ushered in by massively scalable, multi-tenant web 2.0 applications. And new connections - a new way to look at how data and services can be used in a different way to connect businesses to businesses, businesses to people, and people to experiences. Delivering information in a more relevant context. We can talk about these 3 in terms of a progression over time <click>The cloud is a means by which global class, highly scalable and flexible services can be delivered and consumed over the internet through an as-needed, pay-per-use business model You can view cloud through the lens of a provider, and through the lens of the user – the consumer of the service, which might be a person at home using SnapFish to share and print photos. Or a small business owners who uses G-mail, or an IT person who is using a cloud-based help desk application When you look for what’s different, what’s new and disruptive about the cloud, we see 3 technology-related distinctions that represent a new business value: New access, where everything is delivered as a service. There are new software capabilities, ushered in by massively scalable, multi-tenant web 2.0 applications. And new connections - a new way to look at how data and services can be used in a different way to connect businesses to businesses, businesses to people, and people to experiences. Delivering information in a more relevant context. We can talk about these 3 in terms of a progression over time <click>

    8. What problems does “cloud” solve? 8 June 12 (Think of this as a build slide, starting from the bottom left, then going to the bottom right.) We’ve seen for many years that apps and utility infrastructure have been offered over the internet, typically with a contract–orientation, longer term commitment. Given that, What’s new about cloud? What problems does it uniquely solve? <click> First, it is accelerating the shift from a technology orientation to a service orientation - existing technologies that are packaged and delivered as a service, with an as-needed consumption model. So now lots of people in business have rapid access, through any internet device, to services that were otherwise unavailable, or unaffordable, or just too technical for most people to use. Second, new capabilities are a result of Web 2.0 and a new class of massively scalable applications. Like eBay. Salesforece.com, and NetSuite (HP partnership). So now, service providers can reach a vast audience, new markets, much faster than before. And service users, the consumers, have access to capabilities that might have been too expensive or complex – out of reach, like a ERP application for SMB. Businesses benefit from lower cost, and much faster time to market with the advent of flexible consumption of cloud applications. Third, the future of cloud poses entirely new connections and technology value. Imagine if massive amounts of data could be easily accessed by a variety of services. The data becomes more contextually relevant. For example, if every participant in a food supply chain could stream certain types of non-proprietary data about their part in the processes, you could better search massive amounts of data to identify, for example, the source of a salmonella outbreak. Right now, integrating supply chain software from one to another is difficult, it’s real expensive. And, hard to change. (Think of this as a build slide, starting from the bottom left, then going to the bottom right.) We’ve seen for many years that apps and utility infrastructure have been offered over the internet, typically with a contract–orientation, longer term commitment. Given that, What’s new about cloud? What problems does it uniquely solve? <click> First, it is accelerating the shift from a technology orientation to a service orientation - existing technologies that are packaged and delivered as a service, with an as-needed consumption model. So now lots of people in business have rapid access, through any internet device, to services that were otherwise unavailable, or unaffordable, or just too technical for most people to use. Second, new capabilities are a result of Web 2.0 and a new class of massively scalable applications. Like eBay. Salesforece.com, and NetSuite (HP partnership). So now, service providers can reach a vast audience, new markets, much faster than before. And service users, the consumers, have access to capabilities that might have been too expensive or complex – out of reach, like a ERP application for SMB. Businesses benefit from lower cost, and much faster time to market with the advent of flexible consumption of cloud applications. Third, the future of cloud poses entirely new connections and technology value. Imagine if massive amounts of data could be easily accessed by a variety of services. The data becomes more contextually relevant. For example, if every participant in a food supply chain could stream certain types of non-proprietary data about their part in the processes, you could better search massive amounts of data to identify, for example, the source of a salmonella outbreak. Right now, integrating supply chain software from one to another is difficult, it’s real expensive. And, hard to change.

    9. Defining SaaS for SMBs Delivering a range of services via the Web Pay-as-you-go basis SMB benefits Lower costs Access to highly productive business solutions Messaging services CRM June 12 9 So lower cost is key. With SaaS, solutions can be delivered on a pay-as-you-go basis. That means an SMB customer can have the benefits of highly productive business solutions, Microsoft Exchange, for example, with no upfront investment in either software or hardware—and with minimal expenses for administration and management. Obviously, the savings can be enormous—a vital consideration for SMBs at any time, and especially in times of economic uncertainty. So lower cost is key. With SaaS, solutions can be delivered on a pay-as-you-go basis. That means an SMB customer can have the benefits of highly productive business solutions, Microsoft Exchange, for example, with no upfront investment in either software or hardware—and with minimal expenses for administration and management. Obviously, the savings can be enormous—a vital consideration for SMBs at any time, and especially in times of economic uncertainty.

    10. SaaS evolution model June 12 10 As can be seen from the model above – Software-as-a-Service can be delivered in numerous ways, but all on a subscription bases. The further the application is moved into the cloud, the less customer technology focus and involvement will be needed. Combining traditional On-premise perpetual licensed software with one of more services on subscription basis adds up Software + Service As can be seen from the model above – Software-as-a-Service can be delivered in numerous ways, but all on a subscription bases. The further the application is moved into the cloud, the less customer technology focus and involvement will be needed. Combining traditional On-premise perpetual licensed software with one of more services on subscription basis adds up Software + Service

    11. Forces driving cloud computing and SaaS in the market Growing utility and real estate costs “Green” concerns Demand for increased efficiency Rapid growth in number of mobile devices Unstable economy Increased functionality available over the web Key Drivers Cost savings Faster deployment Improved ROI Growth in core competency June 12 11 Why Now? In the ever-changing world of high technology, the forces driving cloud computing and SaaS are familiar. Among them: Skyrocketing utility and real estate costs and increasing “green” concerns that force users to look for new ways to meet growing IT requirements without adding servers and floor space; Demands for increased efficiency prompted by the realization that 85% of a company’s computing capacity is likely to be idle at any given time; The accelerating growth of the internet, itself—with roughly 2 billion people now on the web, worldwide; The rapid growth in the number of mobile devices, many of which need access to sophisticated and mission-critical applications, including business-class messaging. As just one example, there are now about 3.5 million mobile phones, many of them with cameras. The unstable economy also make SaaS an affordable and less risky option. Increased functionality available over the web For smaller customers, however, a key driver is cost savings. SaaS makes it possible for many smaller and mid-size companies to get the technology and services they need without a significant investment in either infrastructure or on-premise deployment—with faster deployment and improved ROI. For these SMBs, the services are likely to include everything from messaging and collaboration solutions built on Microsoft Exchange, SharePoint or Microsoft Dynamics CRM for customer relationship management. It might also include Windows Server products for infrastructure solutions such as storage or web presence. Also, HP is focused on making SMB's more competitive in their business' core competency so that they can grow. Larger customers’ motivations also begins with savings—the savings that come from business improvements at the lowest possible cost. Using the cloud, Mid Market or Enterprise Customers can gain access to advanced capabilities on either an ongoing basis or to meet short-term capacity peaks. For example, even a very large company with an equally large data center might need extra computing power to handle seasonal workloads. They could buy still more servers, but that would leave them with all that extra capacity standing idle for most of the year. By using on-demand computing power via the web, the company can have the added capacity it needs, when it needs it, without adding needless expenses.   By offering Software-as-a-Service to SMBs, service providers/hosters are positioned to profit from this expanding market. As we noted above, your opportunities are also growing in two related, potentially profitable areas: (1) selling service providers/hosters the hardware and software they need in order to serve their customers and contain their costs; and (2) reselling—or private labeling—the hosted services they offer. Why Now? In the ever-changing world of high technology, the forces driving cloud computing and SaaS are familiar. Among them: Skyrocketing utility and real estate costs and increasing “green” concerns that force users to look for new ways to meet growing IT requirements without adding servers and floor space; Demands for increased efficiency prompted by the realization that 85% of a company’s computing capacity is likely to be idle at any given time; The accelerating growth of the internet, itself—with roughly 2 billion people now on the web, worldwide; The rapid growth in the number of mobile devices, many of which need access to sophisticated and mission-critical applications, including business-class messaging. As just one example, there are now about 3.5 million mobile phones, many of them with cameras. The unstable economy also make SaaS an affordable and less risky option. Increased functionality available over the web For smaller customers, however, a key driver is cost savings. SaaS makes it possible for many smaller and mid-size companies to get the technology and services they need without a significant investment in either infrastructure or on-premise deployment—with faster deployment and improved ROI. For these SMBs, the services are likely to include everything from messaging and collaboration solutions built on Microsoft Exchange, SharePoint or Microsoft Dynamics CRM for customer relationship management. It might also include Windows Server products for infrastructure solutions such as storage or web presence. Also, HP is focused on making SMB's more competitive in their business' core competency so that they can grow. Larger customers’ motivations also begins with savings—the savings that come from business improvements at the lowest possible cost. Using the cloud, Mid Market or Enterprise Customers can gain access to advanced capabilities on either an ongoing basis or to meet short-term capacity peaks. For example, even a very large company with an equally large data center might need extra computing power to handle seasonal workloads. They could buy still more servers, but that would leave them with all that extra capacity standing idle for most of the year. By using on-demand computing power via the web, the company can have the added capacity it needs, when it needs it, without adding needless expenses.   By offering Software-as-a-Service to SMBs, service providers/hosters are positioned to profit from this expanding market. As we noted above, your opportunities are also growing in two related, potentially profitable areas: (1) selling service providers/hosters the hardware and software they need in order to serve their customers and contain their costs; and (2) reselling—or private labeling—the hosted services they offer.

    12. Cloud’s down-to-earth potential “Worldwide SaaS revenues will reach $15 billion as soon as 2012” -IDC “31% of mid-sized companies used SaaS services in 2007, twice as many as 2004” -BusinessWeek “By 2012, 28% of all new business applications will be delivered via SaaS” -IDC “The cloud is real. At the same time it’s not a panacea.” -Thomas Hogan, Senior VP for HP June 12 12 Is cloud computing really the proverbial The Next Big Thing? Many people say the answer is yes. After years of discussion and fervent anticipation, hosting has now become a viable, mature industry, one that’s changing the technology marketplace forever. For example: IDC says the software-on demand market reached $5.71 billion (US) in 2007 They add that worldwide SaaS revenues will reach $15 billion as soon as 2012, AND we are looking at almost 3 times that amount when you take in to consideration not just SaaS revenues, but the entire build out of cloud data centers. IDC also projects a compound annual growth of 24.4% with sales almost evenly distributed among companies of all sizes Merrill Lynch estimates that cloud computing will be a $95 billion (US) global market in five years, with 12% of all software sales BusinessWeek says 31% of mid-size companies used SaaS services in 2007, twice as many as 2004 IDC adds that by 2012, 28% of all new business applications will be delivered via SaaS subscription offers  Obviously, SaaS is shaping up as a huge market. To profit from it, you must uncover your customer’s very specific needs. Once again, according to Thomas Hogan, at a recent Cloud Summit Executive conference, you can assess the best solution for your customer knowing that traditional on-premises computing will remain essential for large enterprises. Also you must recognize that cloud computing is good for many applications but not for all of them. A portion of the enterprise technology portfolio will still be optimized around the on-premises computing for many years to come. “The cloud is real. It’s disruptive. At the same time it’s not a panacea.” “The world won’t be 100% cloud in five years.” According to Hogan, the net net is that, to the extent that cloud represents just another channel for IT solutions and given how most enterprises will continue to address their needs through multiple channels, HP’s go-to-cloud market strategy is largely about helping enterprises contemplate and manage services across the variety of channels. We need to draw the customer’s attention to the existing use of pseudo cloud items. We, as consumers, are already using these types of items without second thought such as: cell phone apps, movies on demand from broadband providers, podcasting, etc. It’s already out there – it’s just time for us to recognize the greater business potential. Is cloud computing really the proverbial The Next Big Thing? Many people say the answer is yes. After years of discussion and fervent anticipation, hosting has now become a viable, mature industry, one that’s changing the technology marketplace forever. For example: IDC says the software-on demand market reached $5.71 billion (US) in 2007 They add that worldwide SaaS revenues will reach $15 billion as soon as 2012, AND we are looking at almost 3 times that amount when you take in to consideration not just SaaS revenues, but the entire build out of cloud data centers. IDC also projects a compound annual growth of 24.4% with sales almost evenly distributed among companies of all sizes Merrill Lynch estimates that cloud computing will be a $95 billion (US) global market in five years, with 12% of all software sales BusinessWeek says 31% of mid-size companies used SaaS services in 2007, twice as many as 2004 IDC adds that by 2012, 28% of all new business applications will be delivered via SaaS subscription offers  Obviously, SaaS is shaping up as a huge market. To profit from it, you must uncover your customer’s very specific needs. Once again, according to Thomas Hogan, at a recent Cloud Summit Executive conference, you can assess the best solution for your customer knowing that traditional on-premises computing will remain essential for large enterprises. Also you must recognize that cloud computing is good for many applications but not for all of them. A portion of the enterprise technology portfolio will still be optimized around the on-premises computing for many years to come. “The cloud is real. It’s disruptive. At the same time it’s not a panacea.” “The world won’t be 100% cloud in five years.” According to Hogan, the net net is that, to the extent that cloud represents just another channel for IT solutions and given how most enterprises will continue to address their needs through multiple channels, HP’s go-to-cloud market strategy is largely about helping enterprises contemplate and manage services across the variety of channels. We need to draw the customer’s attention to the existing use of pseudo cloud items. We, as consumers, are already using these types of items without second thought such as: cell phone apps, movies on demand from broadband providers, podcasting, etc. It’s already out there – it’s just time for us to recognize the greater business potential.

    13. VAR opportunity Provide private labeling hosted services Sell to service providers/hosters Offer customers multiple channels On-premise and/or on-line June 12 13 A growing number of service providers are jumping into the market and they are looking for an adaptive, scalable, and highly flexible infrastructure on which they can build a platform to host cloud computing and SaaS services for their SMB customers. Together, these “service providers/hosters” have developed what amounts to a new industry. They have also developed a new, rapidly expanding, and potentially very lucrative opportunity for you. The main opportunities for VARS like you to explore are providing private label hosting services and selling to service providers/hosters. The cloud revolution has allowed you to expand your portfolio - You now have the choice of offering to your customers IT solutions that are on premise or delivered online. You can offer them the specific solutions that make hosting profitable for them and attractive for their customers. That means Microsoft hosting services on a platform of HP ProLiant servers, HP BladeSystem, and HP StorageWorks—plus the benefits of virtualization that come from putting the HP Adaptive Infrastructure to work. To be specific, we will show you how to sell the first team, the leading names in hosting: Microsoft Hosted Messaging and Collaboration (HMC), which includes the hosted version of Microsoft’s immensely successful business-class e-mail software, Microsoft Exchange as well as Windows SharePoint Services 3.0, a streamlined set of collaboration capabilities, Microsoft Dynamics CRM 4.0, a fully integrated customer relationship system that give users the capabilities to create and maintain a clear view of their customers from first contact through the sale and beyond, Custom solutions offer hosters vertical applications, often built on a variety of Microsoft software products such as SQL Server, BizTalk, and VisualBasic. HP can help you understand the ways these environments are Microsoft licensed and configured for HP hardware. HP ProLiant servers, BladeSystem, and StorageWorks, highly scalable platforms with exceptional performance, availability, expandability, and energy efficiency—exactly what high volume, high performance hosters need Virtualization through the HP Adaptive Infrastructure, an efficient, cost-effective approach to pooling IT resources, allowing many more applications to be combined on a single server to reduce hoster’s hardware, power, cooling, and floor space expenses by as much as 50% - 70%. Virtualization through Windows Server 2008 Hyper-V is Microsoft’s next-generation hypervisor-based virtualization product, enabling hosters to make the best use of their server hardware investment by consolidating multiple server roles as separate virtual machines running on a single physical machine. Hosters can also efficiently run multiple operating systems (Windows, Linux, and others) in parallel, on a single server, allowing them to fully leverage the power of x64 computing. These are the core products and solutions you’ll be offering hosters—and around which they’ll offer hosted services via the internet. But first, let’s examine the opportunities for you to re-sell these hosted services to your own customers—i.e., how to capitalize on the cloud without much capital. A growing number of service providers are jumping into the market and they are looking for an adaptive, scalable, and highly flexible infrastructure on which they can build a platform to host cloud computing and SaaS services for their SMB customers. Together, these “service providers/hosters” have developed what amounts to a new industry. They have also developed a new, rapidly expanding, and potentially very lucrative opportunity for you. The main opportunities for VARS like you to explore are providing private label hosting services and selling to service providers/hosters. The cloud revolution has allowed you to expand your portfolio - You now have the choice of offering to your customers IT solutions that are on premise or delivered online. You can offer them the specific solutions that make hosting profitable for them and attractive for their customers. That means Microsoft hosting services on a platform of HP ProLiant servers, HP BladeSystem, and HP StorageWorks—plus the benefits of virtualization that come from putting the HP Adaptive Infrastructure to work. To be specific, we will show you how to sell the first team, the leading names in hosting: Microsoft Hosted Messaging and Collaboration (HMC), which includes the hosted version of Microsoft’s immensely successful business-class e-mail software, Microsoft Exchange as well as Windows SharePoint Services 3.0, a streamlined set of collaboration capabilities, Microsoft Dynamics CRM 4.0, a fully integrated customer relationship system that give users the capabilities to create and maintain a clear view of their customers from first contact through the sale and beyond, Custom solutions offer hosters vertical applications, often built on a variety of Microsoft software products such as SQL Server, BizTalk, and VisualBasic. HP can help you understand the ways these environments are Microsoft licensed and configured for HP hardware. HP ProLiant servers, BladeSystem, and StorageWorks, highly scalable platforms with exceptional performance, availability, expandability, and energy efficiency—exactly what high volume, high performance hosters need Virtualization through the HP Adaptive Infrastructure, an efficient, cost-effective approach to pooling IT resources, allowing many more applications to be combined on a single server to reduce hoster’s hardware, power, cooling, and floor space expenses by as much as 50% - 70%. Virtualization through Windows Server 2008 Hyper-V is Microsoft’s next-generation hypervisor-based virtualization product, enabling hosters to make the best use of their server hardware investment by consolidating multiple server roles as separate virtual machines running on a single physical machine. Hosters can also efficiently run multiple operating systems (Windows, Linux, and others) in parallel, on a single server, allowing them to fully leverage the power of x64 computing. These are the core products and solutions you’ll be offering hosters—and around which they’ll offer hosted services via the internet. But first, let’s examine the opportunities for you to re-sell these hosted services to your own customers—i.e., how to capitalize on the cloud without much capital.

    14. It’s hard to imagine a business opportunity that offers you as many advantages as reselling hosting services under your own brand. One obvious reason: reselling hosted services is the fastest, most direct way to get in on The Next Big Thing—the expanding, almost exploding, SaaS market.It’s hard to imagine a business opportunity that offers you as many advantages as reselling hosting services under your own brand. One obvious reason: reselling hosted services is the fastest, most direct way to get in on The Next Big Thing—the expanding, almost exploding, SaaS market.

    15. Benefits of reselling hosted services Virtually risk free Leverages the skills of your existing employees Generates a steady monthly revenue stream for you Requires no licensing skills on your part Builds on your organization’s current strengths Solidifies your role as trusted advisor Creates opportunities to connect and grow with new customers Adds opportunities for incremental sales Supported by service provider’s/hoster’s staff Adds to your end-customers’ ROI Takes advantage of HP and Microsoft’s affiliation with major private label providers Good deal for your SMB customers June 12 15 In the past few years, the distribution of information technology (IT) has started to see a shift from hardware and software that is delivered by a reseller to a new model: The emerging distribution of hosted services through a distribution channel. Your role as a reseller and trusted advisor to the end customer makes you one of the key players in this new hosted services distribution model; hesitating to embrace this new way of doing business will give your competitors the opportunity to get their foot in the door and build trust with your customers. There are many other reasons that could prove significant for you. That’s because reselling hosted services: Is virtually risk free—with little or no upfront investment in either hardware or software—and with no setup fees or monthly minimums, Leverages the skills of your existing employees, Generates a steady, predictable, and very attractive monthly revenue stream—with margins typically 30% - 50%, Requires no licensing skills on your part, Builds on your organization’s current strengths—its sales and marketing skills, technical knowledge, and reputation (and HP and Microsoft will help you build on those skills to sell and maintain a successful business reselling hosted services), Solidifies your role as a trusted advisor among current customers, Creates opportunities to connect and grow with new customers, Adds opportunities for incremental sales—especially for HP and Microsoft solutions, Is supported by the service provider’s/hoster’s own staff, backed by HP and Microsoft experts, Because it requires no upfront investment from them, it can add substantially to your end-customers’ ROI, Takes advantage of the special affiliation HP and Microsoft have formed with major private label providers. Hosted services is also a very good deal for your SMB customers. They get up and running quickly on valuable solutions such as Microsoft Exchange, SharePoint, and Microsoft Dynamics CRM as a service via the web. They don’t have to worry about licenses or compliance—that’s taken care of by the service provider/hoster. They have virtually no up-front investment, and all maintenance and updates are also handled by the service provider/hoster. In turn, your customers get all the benefits of enterprise-class solutions, the kind they’d probably have trouble buying, maintaining, and administering on their own. And because it’s built on Microsoft and HP technology, they’ll know its state of the art. The result? You can say to your Hosted Exchange customers, “I can offer you a mail system you don’t have to worry about—one that’s a lot better than you could afford to run on your own. It includes backup and advanced security capabilities. It can support your remote devices. It helps you meet compliance regulations. And I can migrate all your old mail quickly—so in many cases, you can start tomorrow.” In the past few years, the distribution of information technology (IT) has started to see a shift from hardware and software that is delivered by a reseller to a new model: The emerging distribution of hosted services through a distribution channel. Your role as a reseller and trusted advisor to the end customer makes you one of the key players in this new hosted services distribution model; hesitating to embrace this new way of doing business will give your competitors the opportunity to get their foot in the door and build trust with your customers. There are many other reasons that could prove significant for you. That’s because reselling hosted services: Is virtually risk free—with little or no upfront investment in either hardware or software—and with no setup fees or monthly minimums, Leverages the skills of your existing employees, Generates a steady, predictable, and very attractive monthly revenue stream—with margins typically 30% - 50%, Requires no licensing skills on your part, Builds on your organization’s current strengths—its sales and marketing skills, technical knowledge, and reputation (and HP and Microsoft will help you build on those skills to sell and maintain a successful business reselling hosted services), Solidifies your role as a trusted advisor among current customers, Creates opportunities to connect and grow with new customers, Adds opportunities for incremental sales—especially for HP and Microsoft solutions, Is supported by the service provider’s/hoster’s own staff, backed by HP and Microsoft experts, Because it requires no upfront investment from them, it can add substantially to your end-customers’ ROI, Takes advantage of the special affiliation HP and Microsoft have formed with major private label providers. Hosted services is also a very good deal for your SMB customers. They get up and running quickly on valuable solutions such as Microsoft Exchange, SharePoint, and Microsoft Dynamics CRM as a service via the web. They don’t have to worry about licenses or compliance—that’s taken care of by the service provider/hoster. They have virtually no up-front investment, and all maintenance and updates are also handled by the service provider/hoster. In turn, your customers get all the benefits of enterprise-class solutions, the kind they’d probably have trouble buying, maintaining, and administering on their own. And because it’s built on Microsoft and HP technology, they’ll know its state of the art. The result? You can say to your Hosted Exchange customers, “I can offer you a mail system you don’t have to worry about—one that’s a lot better than you could afford to run on your own. It includes backup and advanced security capabilities. It can support your remote devices. It helps you meet compliance regulations. And I can migrate all your old mail quickly—so in many cases, you can start tomorrow.”

    16. Reasons SMBs need hosted messaging Obtain access to information from anywhere Demand for improved productivity – sharing information Desire for reliable, low maintenance messaging with Corporate-class capabilities despite expense and lack of expertise June 12 16 SMBs need hosted messaging – here are some key reasons: 1. Obtaining access from anywhere due to a high incidence of employees who travel or work outside the office including at home and at client, partner, or vendor sites. This leads to a need for: Frequent email access from home office or branch office Access to applications from anywhere, Employees working outside office – client sites, partner sites, vendor sites, Synchronize mobile phones or PDAs with inbox, contacts, and calendars 2. A demand for improved productivity such as: Sharing files with employees, partners and customers Sharing calendars and task lists with employees and/or business partners Sharing information with other employees Sharing business contacts and account information with other employees Instant messaging with other employees and/or business partners 3. The desire for reliable, low maintenance messaging with Corporate-class capabilities and dependability despite: Not enough internal expertise, High cost of technical expertise to maintain systems, Fear of unacceptable downtime, Cost of maintaining redundant systems, Need for additional features, Problems of keeping virus protection up to date Problems of providing consistent off-site data backup, Lost data when a laptop is lost. SMBs need hosted messaging – here are some key reasons: 1. Obtaining access from anywhere due to a high incidence of employees who travel or work outside the office including at home and at client, partner, or vendor sites. This leads to a need for: Frequent email access from home office or branch office Access to applications from anywhere, Employees working outside office – client sites, partner sites, vendor sites, Synchronize mobile phones or PDAs with inbox, contacts, and calendars 2. A demand for improved productivity such as: Sharing files with employees, partners and customers Sharing calendars and task lists with employees and/or business partners Sharing information with other employees Sharing business contacts and account information with other employees Instant messaging with other employees and/or business partners 3. The desire for reliable, low maintenance messaging with Corporate-class capabilities and dependability despite: Not enough internal expertise, High cost of technical expertise to maintain systems, Fear of unacceptable downtime, Cost of maintaining redundant systems, Need for additional features, Problems of keeping virus protection up to date Problems of providing consistent off-site data backup, Lost data when a laptop is lost.

    17. SMB pain points Costs of acquiring, administering and maintaining IT solutions How to get more productivity from their workforce Financing new assets Energy and cooling costs IT staff being drawn away from critical tasks to handle messaging, patching, upgrades Messaging problems becoming more severe Internal expertise too expensive Outsourcing IT functions Security and reliability needed 7x24x360 Off-site backup important Virus protection needs Need to decrease down-time Increasing desire to be “up-to-date” June 12 17 As you know, the selling process always begins with an understanding of your prospect’s “pain points,” which is another way of saying you need to understand the worries that give them sleepless nights. In this case, SMBs are staying up late to worry about: The costs of acquiring, administering, and maintaining the IT solutions they need in order to compete (or simply survive), How to get more productivity from their workforce—especially at a time when hiring might be cost-prohibitive, Financing new assets, Energy and cooling costs that seem out of control, Management demands to make the data center greener, Their IT staff being drawn away from business-critical tasks to monitor and maintain less-critical services such as messaging, Using space more efficiently. In addition to these pain points, some SMB messaging- and communication-related problems are actually becoming more severe. For example: Internal expertise for sophisticated messaging systems support is too expensive or scarce. As messaging systems become more complex and include more functionality, these problems will grow. In order to compete, SMBs increasingly need to focus their resources on their core competency. This is often accomplished by outsourcing functions where competency is limited, including IT. Security and reliability are needed on a 7x24x360 basis. Off-site backup, retrieval, and archiving are increasingly important. The growing need for protection against, and the prevention of, viruses and SPAM. The need to decrease down-time through proactive problem identification. For nearly all service-related businesses, and many non-service organizations, there is also an increasing desire to enhance their professional image by being seen as “up to date” in the use of technology. As you know, the selling process always begins with an understanding of your prospect’s “pain points,” which is another way of saying you need to understand the worries that give them sleepless nights. In this case, SMBs are staying up late to worry about: The costs of acquiring, administering, and maintaining the IT solutions they need in order to compete (or simply survive), How to get more productivity from their workforce—especially at a time when hiring might be cost-prohibitive, Financing new assets, Energy and cooling costs that seem out of control, Management demands to make the data center greener, Their IT staff being drawn away from business-critical tasks to monitor and maintain less-critical services such as messaging, Using space more efficiently. In addition to these pain points, some SMB messaging- and communication-related problems are actually becoming more severe. For example: Internal expertise for sophisticated messaging systems support is too expensive or scarce. As messaging systems become more complex and include more functionality, these problems will grow. In order to compete, SMBs increasingly need to focus their resources on their core competency. This is often accomplished by outsourcing functions where competency is limited, including IT. Security and reliability are needed on a 7x24x360 basis. Off-site backup, retrieval, and archiving are increasingly important. The growing need for protection against, and the prevention of, viruses and SPAM. The need to decrease down-time through proactive problem identification. For nearly all service-related businesses, and many non-service organizations, there is also an increasing desire to enhance their professional image by being seen as “up to date” in the use of technology.

    18. Answering SMB concerns with cloud services Sell the message of hosted service to your customers June 12 18 What you can offer them is an answer to each of those concerns, plus: The web-based services SMBs are most interested in, including Microsoft Hosted Exchange and Microsoft Dynamics CRM, Rock-solid performance with extremely low failure rates, Support that’s available 24/7—with fast response times from the service provider/hoster, so you can be as responsive as possible to your customers, Hot spares on hand at the service provider’s/hoster’s data center in case of a worst case scenario, Greater peace of mind based on full data protection, disaster recovery, and security—including virus and SPAM filtering, Archiving to help meet regulatory compliance, The possibility (with some service providers/hosters) of free 30-day trials. more available capital to grow the business The first step is to sell the message of hosted services to your customers. Because you already work with many companies analyzing and meeting their current and future needs, you’re in a unique position to figure out which of them are viable prospects for hosting services. What you can offer them is an answer to each of those concerns, plus: The web-based services SMBs are most interested in, including Microsoft Hosted Exchange and Microsoft Dynamics CRM, Rock-solid performance with extremely low failure rates, Support that’s available 24/7—with fast response times from the service provider/hoster, so you can be as responsive as possible to your customers, Hot spares on hand at the service provider’s/hoster’s data center in case of a worst case scenario, Greater peace of mind based on full data protection, disaster recovery, and security—including virus and SPAM filtering, Archiving to help meet regulatory compliance, The possibility (with some service providers/hosters) of free 30-day trials. more available capital to grow the business The first step is to sell the message of hosted services to your customers. Because you already work with many companies analyzing and meeting their current and future needs, you’re in a unique position to figure out which of them are viable prospects for hosting services.

    19. Targeting your customers Key indicators Company growing fast Hardware /software need upgrading Need to add to their IT but want to avoid expense Want to add CRM or Exchange Worried about rising energy and cooling costs Need better communications, greater security Desire to focus on core competency June 12 19 Microsoft has conducted extensive research in over 20 countries with SMBs in order to fully understand the Hosted Messaging with Collaboration (HMC) opportunity, and support its Hosting Service Provider Partners in their business development efforts. This research has identified that there are a number of characteristics that will assist service providers in focusing their marketing and sales efforts on the SMB segments most likely to adopt HMC. Although these characteristics have considerable commonality across geographies, there is some variation by country or region. Microsoft research has established the following basic characteristics of the most attractive HMC candidates: The largest group will have between four and 100 employees. However a growing number of larger organizations—or departments of larger organizations—will also be good candidates for HMC. 60-70% of the best candidate companies are currently using webmail or POP email for business critical communications (rather than corporate-class email and messaging solutions). 10-15% are companies with out-of-date (4+ years) email servers. 10-15% are new businesses. Business adding to an existing email infrastructure. Among other the key indicators: Any company that’s growing fast, outstripping IT’s ability to keep up, Any company with legacy hardware and software that needs upgrading, Any company that needs to add to their IT, but would rather (or must) avoid the expense and headaches, Any company that wants to add CRM or Exchange—or replace a competitive solution, Any company with IT space problems, Any company worried about rising energy and cooling costs, Any company trying to respond to needs for better internal communications, access to mobile devices, greater security, or regulatory compliance issues. Any company looking to focus on its core competency and free up cash from capital expenditure Microsoft has conducted extensive research in over 20 countries with SMBs in order to fully understand the Hosted Messaging with Collaboration (HMC) opportunity, and support its Hosting Service Provider Partners in their business development efforts. This research has identified that there are a number of characteristics that will assist service providers in focusing their marketing and sales efforts on the SMB segments most likely to adopt HMC. Although these characteristics have considerable commonality across geographies, there is some variation by country or region. Microsoft research has established the following basic characteristics of the most attractive HMC candidates: The largest group will have between four and 100 employees. However a growing number of larger organizations—or departments of larger organizations—will also be good candidates for HMC. 60-70% of the best candidate companies are currently using webmail or POP email for business critical communications (rather than corporate-class email and messaging solutions). 10-15% are companies with out-of-date (4+ years) email servers. 10-15% are new businesses. Business adding to an existing email infrastructure. Among other the key indicators: Any company that’s growing fast, outstripping IT’s ability to keep up, Any company with legacy hardware and software that needs upgrading, Any company that needs to add to their IT, but would rather (or must) avoid the expense and headaches, Any company that wants to add CRM or Exchange—or replace a competitive solution, Any company with IT space problems, Any company worried about rising energy and cooling costs, Any company trying to respond to needs for better internal communications, access to mobile devices, greater security, or regulatory compliance issues. Any company looking to focus on its core competency and free up cash from capital expenditure

    20. Earlier we said that there were two basic ways for you to profit from the cloud computing revolution. It’s time to discuss the second: selling service providers/hosters the hardware and software they need. As lucrative as private label hosting can be, your expertise in high tech marketing and sales makes this second approach especially attractive.Earlier we said that there were two basic ways for you to profit from the cloud computing revolution. It’s time to discuss the second: selling service providers/hosters the hardware and software they need. As lucrative as private label hosting can be, your expertise in high tech marketing and sales makes this second approach especially attractive.

    21. Who are your best hosting prospects? Enterprise outsourcers Infrastructure and Web service providers/hosters Independent Software Vendors (ISVs) VARS like you responding to customer requests Companies that invest in their own growth Businesses focused on the SMB/Corporate market Vendors who qualify for “Certified” or “Gold” status in the Microsoft Partner Program Your own best customers June 12 21 Your best hosting prospects include both current service providers/hosters and other organizations ready to make the jump. A closer look shows that your best opportunities will be among: Enterprise outsourcers. Many of these are now looking for the shared hosting services needed by SMBs. Microsoft CRM 4.0 and Microsoft Hosted Messaging and Collaboration (HMC) are ideal solutions for shared hosting. Infrastructure and Web service providers/hosters. Independent Software Vendors (ISVs) who are already offering hosting services—especially the relatively smaller ISVs with less than 100 employees. As the hosting business grows, more ISVs—both startups and those that are well established—are joining in. Many of these ISVs can be found at the Microsoft Partner Finder: https://partner.Microsoft.com/40057327 VARs like you responding to their customers’ requests for hosting services—particularly requests for whatever IT systems VARs have developed and deployed on their own. Companies that invest in their own growth through advertising and other marketing efforts. Because they are growing their business, they are poised to make whatever investments their infrastructure might need. Businesses focused on the SMB/Corporate market, especially those with an emphasis on quality and Service Level Agreements. They are not only more likely to invest in their infrastructure in order to provide hosted CRM, they are also less likely to be price-sensitive. Vendors who qualify for “Certified” or “Gold” status in the Microsoft Partner Program. Because they have a vested interest in Microsoft technology, skills, and solutions, these prospects are likely to be responsive to your proposal to move to hosted Microsoft Messaging and Microsoft Dynamics CRM. Many service providers/hosters already committed to Microsoft can be found at the Service Provider Directory: http;://www.Microsoft.com/serviceproviders/solutions/catalog.aspx Your own best customers. These customers already think of you as a trusted advisor, someone to turn to for information on technology and business processes. You can show them how build substantial income and profits by hosting Microsoft Messaging and Microsoft CRM—and research shows that they depend on trusted VARs like you to show them how to make the most of new technologies. Your best hosting prospects include both current service providers/hosters and other organizations ready to make the jump. A closer look shows that your best opportunities will be among: Enterprise outsourcers. Many of these are now looking for the shared hosting services needed by SMBs. Microsoft CRM 4.0 and Microsoft Hosted Messaging and Collaboration (HMC) are ideal solutions for shared hosting. Infrastructure and Web service providers/hosters. Independent Software Vendors (ISVs) who are already offering hosting services—especially the relatively smaller ISVs with less than 100 employees. As the hosting business grows, more ISVs—both startups and those that are well established—are joining in. Many of these ISVs can be found at the Microsoft Partner Finder: https://partner.Microsoft.com/40057327 VARs like you responding to their customers’ requests for hosting services—particularly requests for whatever IT systems VARs have developed and deployed on their own. Companies that invest in their own growth through advertising and other marketing efforts. Because they are growing their business, they are poised to make whatever investments their infrastructure might need. Businesses focused on the SMB/Corporate market, especially those with an emphasis on quality and Service Level Agreements. They are not only more likely to invest in their infrastructure in order to provide hosted CRM, they are also less likely to be price-sensitive. Vendors who qualify for “Certified” or “Gold” status in the Microsoft Partner Program. Because they have a vested interest in Microsoft technology, skills, and solutions, these prospects are likely to be responsive to your proposal to move to hosted Microsoft Messaging and Microsoft Dynamics CRM. Many service providers/hosters already committed to Microsoft can be found at the Service Provider Directory: http;://www.Microsoft.com/serviceproviders/solutions/catalog.aspx Your own best customers. These customers already think of you as a trusted advisor, someone to turn to for information on technology and business processes. You can show them how build substantial income and profits by hosting Microsoft Messaging and Microsoft CRM—and research shows that they depend on trusted VARs like you to show them how to make the most of new technologies.

    22. Service provider/hoster pain points Selecting the best, most productive, and ultimately most profitable software and hardware Availability and uptime to provide the service levels Expandability Power and cooling costs Space constraints Price Getting the right management tools to keep their operations efficient and productive Timely upgrades and security patches Training to leverage their investment Support Increasing their customer base   June 12 22 Obviously, this next big thing is very big, indeed. The question is: How do you make the most of the opportunities? That is, how can you sell to existing service providers/hosters-and perhaps build some of your best customers and prospects into new ones? Selling to service providers/hosters begins with an understanding of their worries and concerns. It turns out, however, that they share many of the same pain points that keep your other customers awake at night. For example, nearly all service providers/hosters are concerned about: Selecting the best, most productive, and ultimately most profitable software and hardware—they can’t afford a mistake, Availability and uptime to provide the service levels their customers expect, Expandability as their business grows, Power and cooling costs, Space constraints, leading them to look for consolidation solutions, Price—which leads them to seek special pricing deals, Getting the right management tools to keep their operations efficient and productive, Timely upgrades and security patches, Getting the training they need to make the most of their investment, Support—meaning everything from financing to design, implementation, deployment, trouble-shooting, and maintenance. Increasing their customer base. In each case, you can ease their worries by showing them how the HP/Microsoft combination has the right answers. The place to start is by selling the right messaging software: Microsoft Hosted Messaging and Collaboration (HMC 4.5) including Hosted Exchange designed especially for service providers/hosters. Obviously, this next big thing is very big, indeed. The question is: How do you make the most of the opportunities? That is, how can you sell to existing service providers/hosters-and perhaps build some of your best customers and prospects into new ones? Selling to service providers/hosters begins with an understanding of their worries and concerns. It turns out, however, that they share many of the same pain points that keep your other customers awake at night. For example, nearly all service providers/hosters are concerned about: Selecting the best, most productive, and ultimately most profitable software and hardware—they can’t afford a mistake, Availability and uptime to provide the service levels their customers expect, Expandability as their business grows, Power and cooling costs, Space constraints, leading them to look for consolidation solutions, Price—which leads them to seek special pricing deals, Getting the right management tools to keep their operations efficient and productive, Timely upgrades and security patches, Getting the training they need to make the most of their investment, Support—meaning everything from financing to design, implementation, deployment, trouble-shooting, and maintenance. Increasing their customer base. In each case, you can ease their worries by showing them how the HP/Microsoft combination has the right answers. The place to start is by selling the right messaging software: Microsoft Hosted Messaging and Collaboration (HMC 4.5) including Hosted Exchange designed especially for service providers/hosters.

    23. Microsoft and HP solutions June 12 23 HP and Microsoft leverage a legacy of cooperation that stretches back more than two decades. This collaborative relationship has produced a range of platforms and solutions to meet the service providers/hosters’ needs, resolve their worries, and put them on the path to profitability. They include: Microsoft Hosted Exchange Server 2007, the hosted version of the legendary Microsoft Exchange, Microsoft Hosted Messaging with Collaboration (HMC 4.5), which brings together other Microsoft messaging products including; Microsoft Windows SharePoint Services to help businesses increase productivity, Microsoft Office Communications Server 2007 to manage real-time communications and more Microsoft Dynamics CRM 4.0, one of the world’s leading customer relationship solutions, Microsoft Windows Server 2008, which includes the ability to virtualize servers and applications, HP ProLiant servers, which give service providers/hosters the availability, uptime, and service levels they need—along with the total flexibility of the HP Adaptive Infrastructure, HP BladeSystem, an infrastructure in a box that saves time, power, and money, HP StorageWorks, that create a simple, robust, and agile infrastructure to minimize the complexity of a service provider/hoster’s storage environment, HP Virtualization, which pools and consolidates resources such as servers, software, and storage, to reduced expenses for hardware, power, cooling, and space. HP and Microsoft leverage a legacy of cooperation that stretches back more than two decades. This collaborative relationship has produced a range of platforms and solutions to meet the service providers/hosters’ needs, resolve their worries, and put them on the path to profitability. They include: Microsoft Hosted Exchange Server 2007, the hosted version of the legendary Microsoft Exchange, Microsoft Hosted Messaging with Collaboration (HMC 4.5), which brings together other Microsoft messaging products including; Microsoft Windows SharePoint Services to help businesses increase productivity, Microsoft Office Communications Server 2007 to manage real-time communications and more Microsoft Dynamics CRM 4.0, one of the world’s leading customer relationship solutions, Microsoft Windows Server 2008, which includes the ability to virtualize servers and applications, HP ProLiant servers, which give service providers/hosters the availability, uptime, and service levels they need—along with the total flexibility of the HP Adaptive Infrastructure, HP BladeSystem, an infrastructure in a box that saves time, power, and money, HP StorageWorks, that create a simple, robust, and agile infrastructure to minimize the complexity of a service provider/hoster’s storage environment, HP Virtualization, which pools and consolidates resources such as servers, software, and storage, to reduced expenses for hardware, power, cooling, and space.

    24. HP solutions – a strong foundation June 12 24 The platform makes the solution—and the next generation platform of HP ProLiant servers, BladeSystem, and StorageWorks—is the right platform for Microsoft HCM and Microsoft Dynamics CRM. In fact, Microsoft runs its own online business on a platform of HP servers, storage, and services precisely because they address the unique needs of service providers/hosters. HP ProLiant servers, give service provider/hosters the availability, uptime, and service levels they need—along with the total flexibility of the HP Adaptive Infrastructure. This gives them the ability to provide a total hosted solution for their customers—the sort of one-stop shopping end users want and expect. HP BladeSystem is an infrastructure in a box that saves time, power, and money. With HP Thermal Logic, BladeSystem uses 30 percent less power and pushes 47 percent less air for the system to cool. With useful features such as hot plug devices, Onboard Administrator, and Virtual Connect, BladeSystem will let service providers/hosters add, replace, move, or recover blades and virtual servers in minutes instead of days. HP StorageWorks are proven, robust industry-leading storage solutions that create a simple, agile infrastructure when integrated with HP ProLiant servers and BladeSystem. HP StorageWorks mean service providers/hosters can minimize the complexity of their storage environment with increased expandability, agility, and responsiveness to the regulatory environment, building an agile infrastructure to meet service levels, control access, and enable business intelligence HP Insight software is designed to unlock the potential of HP ProLiant servers and the HP BladeSystem. It allows you to get more from every hour, watt, and dollar that you invest in your infrastructure. HP ProCurve's data center solutions provide consistency and interoperability across existing networks to help improve performance and manage costs. Supporting facility cooling architectures and virtualization methodologies, these data center solutions promote higher server utilization rates to drive operational efficiencies through optimization of rack space and energy costs. ProCurve’s products are engineered to legendary HP quality standards—backed by ProCurve’s service, support, training and industry-leading warranty. In this training we won’t dive deeper into these and other HP solutions but we will offer many resource links for more information. Let’s take a look at one case study.The platform makes the solution—and the next generation platform of HP ProLiant servers, BladeSystem, and StorageWorks—is the right platform for Microsoft HCM and Microsoft Dynamics CRM. In fact, Microsoft runs its own online business on a platform of HP servers, storage, and services precisely because they address the unique needs of service providers/hosters. HP ProLiant servers, give service provider/hosters the availability, uptime, and service levels they need—along with the total flexibility of the HP Adaptive Infrastructure. This gives them the ability to provide a total hosted solution for their customers—the sort of one-stop shopping end users want and expect. HP BladeSystem is an infrastructure in a box that saves time, power, and money. With HP Thermal Logic, BladeSystem uses 30 percent less power and pushes 47 percent less air for the system to cool. With useful features such as hot plug devices, Onboard Administrator, and Virtual Connect, BladeSystem will let service providers/hosters add, replace, move, or recover blades and virtual servers in minutes instead of days. HP StorageWorks are proven, robust industry-leading storage solutions that create a simple, agile infrastructure when integrated with HP ProLiant servers and BladeSystem. HP StorageWorks mean service providers/hosters can minimize the complexity of their storage environment with increased expandability, agility, and responsiveness to the regulatory environment, building an agile infrastructure to meet service levels, control access, and enable business intelligence HP Insight software is designed to unlock the potential of HP ProLiant servers and the HP BladeSystem. It allows you to get more from every hour, watt, and dollar that you invest in your infrastructure. HP ProCurve's data center solutions provide consistency and interoperability across existing networks to help improve performance and manage costs. Supporting facility cooling architectures and virtualization methodologies, these data center solutions promote higher server utilization rates to drive operational efficiencies through optimization of rack space and energy costs. ProCurve’s products are engineered to legendary HP quality standards—backed by ProCurve’s service, support, training and industry-leading warranty. In this training we won’t dive deeper into these and other HP solutions but we will offer many resource links for more information. Let’s take a look at one case study.

    25. Case study: Hosting on HP BladeSystem c-Class Challenges Reduce carbon footprint Create a future-proof messaging architecture Use less power with IT Results HP BladeSystem reduced power consumption for the messaging environment by 15% IT personnel now work 30% more efficiently with the HP BladeSystem Gree.ch can launch new blade servers in 15 minutes, ensuring greater agility The company gains peace of mind that is delivering IT services of the future Solution Tested and implemented HP BladeSystem c-Class Transferred messaging environment to new architecture June 12 25 Because of the worldwide focus on green technology, a Swiss-based company decided to offer hosted services to small and medium-size enterprises (SMEs) by promising a low carbon footprint. To do so, the company—green.ch—wanted a server technology that was environmentally friendly. But it also needed to create a future-proof architecture that could be used across its entire business. In 2007, HP worked with green.ch, to establish a more energy-efficient adaptive infrastructure based on the BladeSystem c-Class. The result increased the speed of IT change, reduced costs, and increased energy efficiency. HP also helped the company transfer its messaging technology to the new architecture. The project was so successful that within six months, green.ch had rolled out 36 blade enclosures at its data center in Brugg. HP BladeSystem reduced power consumption for the messaging environment by 15 percent, and increased IT personnel efficiency by some 30 percent—with the ability to launch a new blade server in just 15 minutes. From a competitive and sales point of view, green.ch saw important benefits from using the energy efficient HP BladeSystem technology. That’s partly because SMEs, although traditionally focused on price, are increasingly concerned about establishing their environmental credentials. As a result, more and more of them are choosing IT service providers committed to sustainability. By offering hosted services with a low carbon footprint, green.ch not only enhanced the green credentials of its customers, it strengthened its own position as a hosted services provider. Green.ch continues to expand its HP BladeSystem infrastructure; in January, 2008, it deployed 16 additional BladeSystem servers. Because of the worldwide focus on green technology, a Swiss-based company decided to offer hosted services to small and medium-size enterprises (SMEs) by promising a low carbon footprint. To do so, the company—green.ch—wanted a server technology that was environmentally friendly. But it also needed to create a future-proof architecture that could be used across its entire business. In 2007, HP worked with green.ch, to establish a more energy-efficient adaptive infrastructure based on the BladeSystem c-Class. The result increased the speed of IT change, reduced costs, and increased energy efficiency. HP also helped the company transfer its messaging technology to the new architecture. The project was so successful that within six months, green.ch had rolled out 36 blade enclosures at its data center in Brugg. HP BladeSystem reduced power consumption for the messaging environment by 15 percent, and increased IT personnel efficiency by some 30 percent—with the ability to launch a new blade server in just 15 minutes. From a competitive and sales point of view, green.ch saw important benefits from using the energy efficient HP BladeSystem technology. That’s partly because SMEs, although traditionally focused on price, are increasingly concerned about establishing their environmental credentials. As a result, more and more of them are choosing IT service providers committed to sustainability. By offering hosted services with a low carbon footprint, green.ch not only enhanced the green credentials of its customers, it strengthened its own position as a hosted services provider. Green.ch continues to expand its HP BladeSystem infrastructure; in January, 2008, it deployed 16 additional BladeSystem servers.

    26. Let’s move in to the final section.Let’s move in to the final section.

    27. Why HP? June 12 27 In summary, let me say that I think customers are gravitating to us for many reasons. First, we have the reach across multiple markets. Consumers, SMB’s, all the way up to the service providers. This is important because we have the purview to understand how all the pieces fit together, and the value chain associated with that. The breadth of our product and service portfolio helps our customers because, even though most customers use products from a variety of vendors, we are incented to make sure things work together. From the compute fabric, to the optimization of bandwidth, to the virtualization layer, up through the management stack, over to devices. And as a company, HP has the stability and depth to continue delivering on customer requirement – for the long haul. Positioned well to capitalize on future trends Continued cost structure improvements to reinvest in coverage plus deliver shareholder value. Investments to lead specific software and services categories In summary, let me say that I think customers are gravitating to us for many reasons. First, we have the reach across multiple markets. Consumers, SMB’s, all the way up to the service providers. This is important because we have the purview to understand how all the pieces fit together, and the value chain associated with that. The breadth of our product and service portfolio helps our customers because, even though most customers use products from a variety of vendors, we are incented to make sure things work together. From the compute fabric, to the optimization of bandwidth, to the virtualization layer, up through the management stack, over to devices. And as a company, HP has the stability and depth to continue delivering on customer requirement – for the long haul. Positioned well to capitalize on future trends Continued cost structure improvements to reinvest in coverage plus deliver shareholder value. Investments to lead specific software and services categories

    28. Why you win with HP “…Microsoft uses HP technology to help ensure continuous up time and enable an easily managed, easily scaled, and highly secure environment.” -Jim DuBois, General Manager Microsoft IT June 12 28   So why should your customers be interested in cloud computing? What separates SaaS from traditional hardware and software sales is its subscription-based IT service model. There is minimal up-front cost: No pricey licensing, no hardware to purchase, and only a monthly per-user fee. As the trusted advisor to your customers, you need to help them understand the benefits of the new SaaS paradigm and how combining SaaS with on-premise systems can improve running their business and reduce costs. By helping your customers see the benefits of hosted services, you can ensure your share of the growing SaaS market. Jim DuBois, General Manager of Microsoft IT says “Like many web service providers/hosters who need an effective way to help manage their back-end infrastructure more efficiently, Microsoft uses HP technology to help ensure continuous up time and enable an easily managed, easily scaled, and highly secure environment.” “Microsoft.com is one of the most heavily visited sites on the Internet. This puts a tremendous demand on the hardware used. With HP, Microsoft knows that the hardware used in their datacenter will be reliable, easy-to-use and cost-effective.” HP offers a long list of advantages that help you close the sale with service providers/hosters. Among the most important: HP is a leader in hosting technology, and the world’s largest provider of Exchange Server 2007 as a hosted service. We offer a world-class infrastructure designed to meet the unique needs of service providers/hosters. HP is the most experienced in hosted messaging, offering Microsoft Exchange in hosted form for business since 2002. HP has more than two decades of collaboration with Microsoft, working together to develop solutions in hosting as well as many other areas of technology. More than any other vender has ever achieved, HP has four times been named Global Enterprise Partner of the Year for its excellence delivering solutions based on Microsoft technology. And HP has been named a Worldwide Prime Integrator for Microsoft Exchange server 2007. In addition, HP offers: Support for levels 1, 2, and 3 to provide the high availability service providers/hosters require More than 22,000 Microsoft-trained professionals, including 3,600 Microsoft Certified system Engineers and Certified solution Developers. 24x7 Microsoft support service available at hundreds of locations worldwide. Leading server infrastructure for Exchange with 45% of the Microsoft Exchange installed base on HP servers. The experience that comes with 17 million Exchange mailboxes deployed or under contract. The HP Adaptive Infrastructure along with virtualization and consolidation to address the space constraints and energy issuesservice provider/hosters face A total, turn-key solution   So why should your customers be interested in cloud computing? What separates SaaS from traditional hardware and software sales is its subscription-based IT service model. There is minimal up-front cost: No pricey licensing, no hardware to purchase, and only a monthly per-user fee. As the trusted advisor to your customers, you need to help them understand the benefits of the new SaaS paradigm and how combining SaaS with on-premise systems can improve running their business and reduce costs. By helping your customers see the benefits of hosted services, you can ensure your share of the growing SaaS market. Jim DuBois, General Manager of Microsoft IT says “Like many web service providers/hosters who need an effective way to help manage their back-end infrastructure more efficiently, Microsoft uses HP technology to help ensure continuous up time and enable an easily managed, easily scaled, and highly secure environment.” “Microsoft.com is one of the most heavily visited sites on the Internet. This puts a tremendous demand on the hardware used. With HP, Microsoft knows that the hardware used in their datacenter will be reliable, easy-to-use and cost-effective.” HP offers a long list of advantages that help you close the sale with service providers/hosters. Among the most important: HP is a leader in hosting technology, and the world’s largest provider of Exchange Server 2007 as a hosted service. We offer a world-class infrastructure designed to meet the unique needs of service providers/hosters. HP is the most experienced in hosted messaging, offering Microsoft Exchange in hosted form for business since 2002. HP has more than two decades of collaboration with Microsoft, working together to develop solutions in hosting as well as many other areas of technology. More than any other vender has ever achieved, HP has four times been named Global Enterprise Partner of the Year for its excellence delivering solutions based on Microsoft technology. And HP has been named a Worldwide Prime Integrator for Microsoft Exchange server 2007. In addition, HP offers: Support for levels 1, 2, and 3 to provide the high availability service providers/hosters require More than 22,000 Microsoft-trained professionals, including 3,600 Microsoft Certified system Engineers and Certified solution Developers. 24x7 Microsoft support service available at hundreds of locations worldwide. Leading server infrastructure for Exchange with 45% of the Microsoft Exchange installed base on HP servers. The experience that comes with 17 million Exchange mailboxes deployed or under contract. The HP Adaptive Infrastructure along with virtualization and consolidation to address the space constraints and energy issuesservice provider/hosters face A total, turn-key solution

    29. Dive in today: become a private label provider Cloud Computing/SaaS Expressway on the NA Partner Portal: www.hp.com/partners/us/cloud Cloud Computing/SaaS Expressway on the EMEA Partner Smart Portal: www.hp.com/partners/EMEA/cloud USA’s portal to register new partners and for existing partners to access information: www.usa.net/hp/ June 12 29 First- GO to USA.net HP referral site and become a private label provider. Now that we have seen the opportunities open to VARs like you in this new cloud computing landscape you’ll want to look deeper into the specifics. There are many resources available that will help you develop the best possible solution for your customers. Here and on the following slides are links that will provide you with more information.First- GO to USA.net HP referral site and become a private label provider. Now that we have seen the opportunities open to VARs like you in this new cloud computing landscape you’ll want to look deeper into the specifics. There are many resources available that will help you develop the best possible solution for your customers. Here and on the following slides are links that will provide you with more information.

    30. Dig deeper to learn more: Resources p.1 HP and Microsoft Hosted Exchange solutions visit: www.microsoft.com/serviceproviders/   HP BladeSystem: www.hp.com/go/BladeSystem HP StorageWorks: www.hp.com/go/storageworks  HP ProLiant servers: www.hp.com/go/proliant HP Insight software: www.hp.com/go/insight General S+S Info (Business): http://www.microsoft.com/serviceproviders/saas/default.mspx General S+S Info (technical): http://msdn.microsoft.com/en-us/architecture/aa699384.aspx  and http://www.microsoft.com/serviceproviders/saas/technical.mspx June 12 30

    31. Resources (continued – p.2) Microsoft’s hosted solutions: http://www.microsoft.com/serviceproviders/solutions/default.mspx Includes Windows Server Hosting Guidance: http://www.microsoft.com/serviceproviders/solutions/ windowsserverhostingguidance.mspx HMC: http://www.microsoft.com/serviceproviders/solutions/hostedmessaging.mspx CRM: http://www.microsoft.com/serviceproviders/solutions/hostedcrm.mspx Dynamics: http://www.microsoft.com/serviceproviders/solutions/hostedbusinessmanagement.mspx Microsoft Virtualization Virtualization ROI Tool: https://roianalyst.alinean.com/microsoft/virtualization/ “Green” virtualization site: http://www.hyper-green.com/ Virtualization Cost Savings White paper: http://www.microsoft.com/virtualization/wp-costsavings.mspx Virtualization training tools: http://www.microsoft.com/learning/virtualization, including offers for free training plus discounted reference works June 12 31

    32. Resources (continued – p.3) Technical resources Specifically for developers: http://www.microsoft.com/serviceproviders/developers.mspx   HP Partners can also turn to partners that have a deep expertise in planning and deploying hosted solutions. Main partners are: Planet Technologies: http://www.go-planet.com/serviceprovider.asp Implemen.com:  http://www.implement.com/ Community resources Microsoft Hosting Forums: http://forums.asp.net/default.aspx?ForumGroupId=29 Hosting Provisioning Community: http://groups.msn.com/Provisioning Blog Erik Bais (Planet Technologies): http://www.bais.name/ Planet Technologies Podcasts: http://www.wildvoice.com/PlanetTech/Main Sales and Marketing: http://www.microsoft.com/serviceproviders/hosting/ softwareplusservicesmarketing/index.aspx Microsoft Service Provider License Agreement (SPLA): www.hp.com/go/slms/spla http://www.microsoft.com/serviceproviders/licensing/default.mspx  June 12 32

    33. Thank you!Thank you!

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