Windows Server Virtualization Overview and the Microsoft Azure Opportunity

1. Windows Server Virtualization Overview and the Microsoft Azure Opportunity

2. Microsoft Cloud Opportunity Overview US SMB Customer Opportunity Growing your Practice with Microsoft Capitalizing on the Windows Server End of Life Opportunity Demo Microsoft Partner Confidential

3. Microsoft Cloud Opportunity Overview US SMB Customer Opportunity Growing your Practice with Microsoft Capitalizing on the Windows Server End of Life Opportunity Demo Microsoft Partner Confidential

4. “We are the company and the ecosystem that will build productivity experiences and platformsfor the mobile-first, cloud-first world… We're going to empower every individual and every organization to do moreand achieve more. That's our singular mission. That is something that's unique to us.“ -Satya Nadella, CEO, Microsoft

5. We are in a new era of computing Internet Era PC Era Cloud Era Connecting servers, PCs, and networks A PC on every desktop On-demand productivity and hybrid flexibility Microsoft Partner Confidential

6. Worldwide Microsoft cloud adoption Now outpacing On Premises • Cloud products • Office 365 • Microsoft Azure • CRM Online • Windows Intune • Anticipate • 400% Azure US SMB Growth YoY • 100%+ Office 365 Growth YoY Microsoft Partner Confidential

7. The hybrid opportunity is hereSMBs are focused on moving to the cloud and virtualizing on-premises servers Small Business Medium Business Note: based on leading countries surveys Currently use Plan to start Using/Upgrade Microsoft Partner Confidential Source: Worldwide SMB Trends and Transformation, AMI-Partners, 2014.

8. Microsoft Cloud Opportunity Overview US SMB Customer Opportunity Growing your Practice with Microsoft Capitalizing on the Windows Server End of Life Opportunity Demo Microsoft Partner Confidential

9. Grow your businessWhile helping customers protect theirs Issues of strategic importance cited by worldwide SMBs3 49% • of SMBs need help navigating cloud security concerns1 SB MB 24% • of SMBs cite concerns with inadequate technology recovery, backup, and resiliency2 Business opportunity • Deliver high-margin data protection services on top of product resale/upgrade • Make backup and DR affordable to SMBs while earning ongoing services revenue • Leverage incentives/self-service training to improve profitability 1 Forrsights Hardware Survey, Forrester Research, Q4 2013. 2Forrsights Hardware Survey, Forrester Research, Q4 2013. 3AMI ICT Tracking Studies, AMI-Partners, 2014. Microsoft Partner Confidential

10. Customer scenario:Keep your data and your business protected A fire destroys a firm’s on-site line-of-business applications and employee PCs The LOB applications and sensitive data are restored in minutes from an off-site server Employees access their files and apps from off-site mobile devices, just as they left them Office 365 (OneDrive for Business), Windows devices Windows Server 2012 R2 (Hyper-V Replica), Microsoft Azure Microsoft Partner Confidential

11. The game is changing for partnersSMBs are looking for partners who can translate business needs into technology solutions • Partners are shifting to a more consultative role • Gaining a deeper understanding of the customer’s business • Helping customers make the right strategic decisions • Assisting customers in evaluating which technologies and services to purchase and deploy How do I support my mobile employees and keep them productive? Am I ready for a disaster? Will I lose my data? Partner role How do I save money on infrastructure? Do I need the cloud? How do I ensure uptime for my apps? Microsoft Partner Confidential

12. Partner quadruples margins with managed services on Microsoft cloud “We used to ship a server, get 5% and not see the client again for 7 years. With Azure we get more margin on the product, then add setup, migration, and managed services on top. Our services margin is around 60%.” -Patrick Booth, President, CCB, Inc. CCB’s transformation from reseller to solution provider began two years ago when they started recommending Office 365. Today, they offer a wide range of cloud services, including VMs, applications, and websites on Azure. The managed services model keeps CCB in close contact with customers, enabling them to identify needs and sell value-added solutions. Increased margins from 5% on hardware and software resale to 20% on Azure1 Shortened deployment time thanks to Azure templates and automation, improving customer satisfaction More consistent contact with customers uncovers opportunities and increased solution sales PARTNER PROFILE Years in business: 20+ Central location: Racine, Wisconsin Employees: 60 Target customer: non-profits/SMB Website: www.ccbtechnology.com Hear from Patrick Booth: http://1drv.ms/U8TgR2 Microsoft Partner Confidential 120% is the Azure Circle Partner margin.

13. Your path to success Deliver solutions your customers need Offer a breadth of solutions across server and cloud, desktop and mobile device Get to marketquickly Build and deploy fast on a consistent, familiar platform; on-premises, cloud, or hybrid Grow your business andyour profits Evolve into new services and business models, and expand your role as a trusted advisor Microsoft Partner Confidential

14. Microsoft cloud for business Productivity Business Apps Platform GLOBAL-CLASS FLEXIBLE BY DESIGN PEOPLE-FOCUSED | | Microsoft Partner Confidential

15. Azure momentum Microsoft a Leader in Gartner Magic Quadrant (IaaS, PaaS and Cloud Storage) • “Microsoft has a vision of infrastructure and platform services that are not only leading stand-alone offerings, but also seamlessly extend and interoperate with on-premises Microsoft infrastructure...” • “The IaaS and PaaS components within Microsoft Azure feel and operate like part of a unified whole…” • “Microsoft's brand, existing customer relationships, history of running global-class consumer Internet properties, deep investments in engineering , and aggressive road map have enabled it to rapidly attain the status of strategic cloud IaaS provider” Gartner Cloud Infrastructure as a Service (IaaS) Magic Quadrant, May 2014 Microsoft Partner Confidential

16. Microsoft Hybrid Cloud, The right balance. Host and access applications in the cloud with Microsoft Azure and Microsoft Office 365. The best of server and cloud Just the right balance of simplicity, flexibility, and cost for specific business needs. Our partners and customers can choose to host applications in the way that best suits their business, whether on-site, in the cloud, or both. Customers reduce costs as they grow by running more apps on the same server with virtualization built-in to Windows Server 2012 R2.

17. Growing your business with Microsoft AzureMicrosoft helps you to expand your role as a service provider and business advisor Accelerate your speed to market Broaden your customer base and services Grow revenues and increase margins • Enables partners to differentiate by bundling their own IP alongside other cloud offerings • Cloud software is easier to develop, test, and take to market • Lowers the barriers to entry to offer managed services • Reach new customers • Upsell to existing customers. Cross sell within a single platform • Enable and advise your customers as they evolve their business in the cloud • Recurring revenues establishes long-term relationships with your customers • Margins increase as partners learn how to offer fixed-fee engagements with optimized delivery and higher levels of services • Efficiently sell into SMBs leveraging the skills that you already have Microsoft Partner Confidential

18. Introducing ModernBizMicrosoft’s flagship SMB campaign for fiscal year 2015 Integrated, multi-million dollar campaign focused on SMBs. Spans multiple products on the Microsoft platform – from server to cloud, desktop to mobile devices. Addresses key SMB challenges with a breadth of Microsoft solutions that enable the modern business. Complete set of SMB customer-centric marketing and sales materials. $ Microsoft Partner Confidential

19. ModernBizPillars and Customer Scenarios Connect with customers Grow efficiently Increase yoursales Adapt to change Get the most out of your technology Understand your customer • Campaign materials include: • Sales Presentations • Email Templates • Brochures • Case Studies • Digital Assets: Banner Ads/Social • Video Animation • Telesales Guides • Web Content • Campaign Landing Pages Get yourwork done anywhere Be prepared for the unexpected Protect and control your data Work together easily Safeguard your business Business anywhere Learn more

20. Microsoft Cloud Opportunity Overview US SMB Customer Opportunity Growing your Practice with Microsoft Capitalizing on the Windows Server End of Life Opportunity Demo Microsoft Partner Confidential

21. Microsoft Azure conversation starts with Windows Server

22. July 14, 2015 | Windows Server 2003 EOS 1 22M It is estimated that 44% of all Windows Server instances in small & medium businesses are still running Windows Server 2003 (SMB <500 seats) 2 Total estimated Windows Server 2003 instances running worldwide 8M TARGET Europe Windows Server 2012 R2 North America Asia Pacific Microsoft Azure 1 in 6 SQL Server 2005 PHYSICAL INSTANCES | Share of Windows Server 2003 53% Office 365 MEA 47% South America Cloud OS Network VIRTUAL INSTANCES |Share of Windows Server 2003 Windows Server 2003 represents a major opportunity in software, cloud, hardware, migration & development services Microsoft Partner Confidential 1 Source: Microsoft Research Jan 2014, estimate only that may be revised based on updated research | 2 Estimate of the % of SMB instances still running WS 2003 – organizations <500 employees

23. What end of support means Lack of PCI compliance could mean that Visa and MasterCard will no longer do business with your organization Noupdates Noupdates Nocompliance Nocompliance Nosafe haven Nosafe haven Nowis the time to act Windows 2003/R2 servers will not pass a compliance audit Start planning your migration and transforming your datacenter today Impact on Microsoft Small Business Server 2003 Increased operations costs Discontinued support for many applications Impact on both physical and virtualized servers 37 critical updates released in 2013 for Windows Server 2003/R2 Microsoft Partner Confidential

24. Windows Server 2012 R2 Enterprise-class scale and performance Shared nothing live migration with Remote Direct Memory Access Hyper-V Network Virtualization Low-cost, highly available file-based storage Backup and recovery Hybrid applications Windows PowerShell 4.0 Simplified, feature-rich Virtual Desktop Infrastructure (VDI) >_ Microsoft Partner Confidential

25. Opportunity to transform your customer’s network Hybrid cloud Benefits Speed Resilience Cost-efficiency Security Cloud options on demand Datacenter without boundaries Reduced costand complexity Cloud innovation everywhere Dynamic application delivery Rapid response to business Microsoft Azure Windows Server 2012 R2 Microsoft SQL Server Microsoft System Center Microsoft Partner Confidential

26. Microsoft Azure beyond Windows Server While Windows server upgrades do not forget other important attach opportunities: Attach Microsoft Azure to SQL Seed Azure to your O365 customers • Two of every five Windows Servers 2003 also come with SQL 2005 or 2008, both products are ready to be upgraded: • When customers run SQL Server, you can offer a fast, easy way to back up on-premises databases to the cloud with Microsoft Azure. • SQL Server 2014 makes it simple to migrate your customer’s on-premises SQL database into a Window Azure VM. • Office 365 is Microsoft’s fastest growing cloud services. The more customers on O365 you have the more you have a chance to: • Simplify User Access and Management with Azure Active Directory. This features provides a robust set of capabilities to manage users and groups and help secure access to applications including Microsoft online services and a multiplicity of non-Microsoft SaaS applications. Microsoft Partner Confidential

27. Partner uses Microsoft platform to grow business efficiently and adapt to changing customer needs “We do a lot of migrations from older servers to Windows Server 2012 and move customers to Office 365. This has been the standard migration for us over the last 12-15 months. Hyper-V stacked up really well against VMware. They really simplified the licensing, and you don’t have the extra cost of VMWare.” -Kurt Sippel, President, Applied Tech Applied Tech has continued to grow through major technology transitions by focusing on deep expertise in Microsoft solutions. In 2005 they refocused their business on an end-to-end managed services model. Today they are experiencing robust growth by building deeper, long-term customer engagements that span from infrastructure, to business intelligence and communications platforms. Leverages the Microsoft hybrid platform to deliver a portfolio of solutions that span on-premises, cloud, and mobile scenarios Building on familiar, consistent technology and tools means Applied Tech can continue to grow its expertise for its customers With Windows Server 2012, replaced VMware and related licensing costs to increase profitability and simplify licensing PARTNER PROFILE Years in business: 15 Central location: Madison, WI Employees: 51+ Target customer: 250 seats Website: www.appliedtech.us Microsoft Partner Confidential

28. Migration process steps 1 2 3 4 Discover Catalog your software and workloads Assess Categorize applications andworkloads Target Identify your destination(s) Migrate Make the move Microsoft Partner Confidential

29. Target your destination Evaluate options for each application and workload Windows Server 2012 R2 Microsoft Azure Cloud OS Network Microsoft Partner Confidential

30. Partner service opportunities abound to build a hybrid destination Discover Assess Target (destination and journey) Microsoft Partner Confidential

31. Don’t forget the hardware opportunity Windows Server 2012 R2 requires more powerful hardware • Replace server hardware Virtualize on other server Relocate to the cloud or or Microsoft Partner Confidential

32. Resources to assist with each step Target Assess Discover Migrate Determine which apps and workloads are running on Windows Server 2003 Categorize each by type, importance and degree of complexity Choose a migration destination for each, datacenter or in the cloud Build your migration plan –yourself, collaborate with a partner or use a service Download the toolkit - Assessment & Planning Upgrade your skills to Windows Server 2012 Download the Windows Server 2012 R2 trial Download the Deployment Toolkit • Migrating to Windows Server 2012 training • Move to hybrid cloud with System Center & Azure • Azure for IT Pros jumpstart • Office 365: Make a smooth move to Cloud Services • Windows Server 2003 Roles Migration Process • Read the IDC whitepaper: Why you should get current • Watch: WS 2003 End of Life: Infrastructure Migration • Re-architecting with Windows Server & System Center 2012 • Reimagining & Migrating Your Active Directory • Networking Infrastructure and Management • Fileservers and Storage Options • Download the System Center 2012 R2 Trial • Get the Azure 1 month trial • Start your free Office 265 trial Windows Server 2003 End of Service Resources Microsoft Partner Confidential

33. Migration Planning Assistant http://migrationplanningassistant.azurewebsites.net/ Microsoft Partner Confidential

34. Microsoft Cloud Opportunity Overview US SMB Customer Opportunity Growing your Practice with Microsoft Capitalizing on the Windows Server End of Life Opportunity Demo Microsoft Partner Confidential

35. DemoMigration Planning Assistant

36. Get started • Power up your marketing and sales • Find Windows Server 2003 Customers • Use the Windows Server EOS Ready-to-Go campaign to reach out to your Windows Server 2003 customers • Get started now with the latest incentives and promotions • Tap resources to start the migration process • Utilize the Migration Customer website for step-by-step guidance • Visit the Azure SureStep website • Visit theOffice 365 SureStep website • Download the Migration Assessment and Planning Toolkit • Capitalize on current incentives Microsoft Partner Confidential