Infrastructure Optimization A Journey Worth Making

1. Infrastructure Optimization A Journey Worth Making

2. Changing EnvironmentsFactors Challenge How We Interact with Technology Societal • Consumerization • Digital Relationships • Sustainability Technology • Context-Aware Computing • Social Media • Location Intelligence • Cloud Computing Business • Cloud Businesses • Social Business Models • Remote Workforce • Usage-Metered Revenue Models “It will be difficult for anyone to construct a strategy that assumes the business environment will go back to looking like it did in 2007. The future will require new ideas and new capabilities, and many of those will depend on technology.”

3. Current Business ExpectationsReduced Budgets Lead to More Focused Priorities 1 Cutting Cost and Lowering Capex Infrastructure uses up valuable IT resources 2 Driving value for the business with tight IT budgets Leveraging and extending past IT investments to provide future value 3 4 Maintaining security while increasing access and transparency internally and externally Many data centers are a limitation 5 6 Finding the right transformative capabilities across the enterprise: cloud computing, data-center strategies, SaaS, mobility, IT automation?

4. Many Conflicting Demands on ITBudget, Business, and Productivity EmergingCompetitive Threats ScarceStaff MatrixedPartners ChangingMarketConditions Business End Users Need Agility and Flexibility IT Pros Need Control TighterBudgets MergersandAcquisitions AgingHardware DiverseUserPopulations ManyConfigurations

5. Technology Investing Must Shift To an approach that… • Is holistic - across the infrastructure • Reduces complexity and helps to control costs • Meets Business drivers • Is based on proven Best Practices • Prioritizes and sequences IT projects in a structured, systematic manner • Manages Cost • Provides focus on Agility • Improves role-based Productivity Infrastructure Optimization Provides that Approach

6. Infrastructure OptimizationSix Years of Proven Success Basic Standardized Rationalized Dynamic • 2011 Infrastructure and Business Productivity • Updated Model • Over 250 People, plus Analysts collaborated Application Platform Core Infrastructure Business Productivity Proved the benefits via studies with IDC Cross Capability Gartner Maturity Model More Efficient Cost Center Strategic Asset Business Enabler Cost Center Over 6 years of research 15,000+ IT Environments Analyzed MIT Maturity Model

7. Business Value of Optimization “Companies that manage their IT investments most successfully generate returns that are as much as 40% higher than those of their competitors.” – Jeanne W. Ross, Peter Weill, “Six IT Decisions Your IT People Shouldn’t Make,” Harvard Business Review Lower IT Labor Costs Per Server/Year Increased Servers Managed by FTEs Per PC Costs Drop

8. Data Center best practices study with 162 companiesMicrosoft spot light on costs study Optimization Drives Lower TCO LOWER IT LABOR COST PER SERVER PER YEAR LOWER RECURRING TCO INCREASE SERVERS MANAGED PER IT FTE MORE EFFICIENT

9. Infrastructure OptimizationCost Savings *Optimizing Infrastructure: The Relationship Between IT Labor Costs and Best Practices for Managing the Windows Desktop (IDC, October 2006)

10. Microsoft Optimization Model Providing the “How do you get there from here?” Microsoft IO Model Guides the Journey Basic Standardized Rationalized Dynamic Managed and consolidated IT Infrastructure with maximum automation Fully automated management, dynamic resource usage , business linked SLAs Managed IT Infrastructure with limited automation Uncoordinated, manual infrastructure

11. 2011 Core Infrastructure Model 2005 Core Infrastructure Model Basic Standardized Rationalized Dynamic Capabilities Data Center Management & Virtualization Identity and Access Management Datacenter Services Workloads Server Security Desktop, Device, and Server Mgmt Client Services Networking Security and Networking Identity & Security Services Storage Client Security Information Protection & Control Identity and Access Client Management & Virtualization Data Protection and Recovery IT Process & Compliance IT Process & Compliance

12. 2006 Business Productivity Infrastructure Model 2011 Business Productivity Infrastructure Model Workspace Portals Collaboration Collaboration Basic Standardized Rationalized Dynamic Social Computing Project Management Messaging Unified Communications IM/Presence Unified Communications Conferencing Voice Enterprise Content Management Information Management Enterprise Content Management Process efficiency E-Discovery Enterprise Search Information Access Enterprise Search Interactive Experience and Navigation Dashboards Reporting and Analysis Business Intelligence Analytics and Data Mining Report Generation and Distribution Authoring Multi Device Support Content Creation User Accessibility Interoperability

13. Where Are You? Where is your organization? Can best practices be learned from other IT environments? User/Role Specific Service Oriented Management Increased Operational Efficiency Less Total Cost of Ownership Measurement and Service Level Agreement Management Basic Standardized Rationalized Dynamic Recognition of Workloads Servers are generic Best Practices Generated and Consumed

14. Migration to the CloudWhy Are We Seeing Movement STANDARDIZED SERVICE CUSTOMIZABLE PRODUCT LOW OPERATIONS COST

15. Cloud Computing Lay the Foundation Now Automate and Secure Optimize Virtualized Infrastructure Standardize Offerings and Processes • Consistent identity and security models • Secure, well managed infrastructure to applications • Automate delivery of datacenter capacity • Automate simplified processes • Integrate human and system workflows Enrollment for Core Infrastructure • Scale virtualization and management to datacenter • Logical pooling of all fabric resources via virtualization • Application focused Management • Standardization of platform and infrastructure offering • Simplify and codify processes around industry standards • Focus on becoming service provider Simple• Cost Effective •Flexible • Full spectrum datacenter to cloud management • Delivering cloud computing with existing investment Familiar & Consistent Platform Common Identify Framework • #1 Application Server in the world > 70% share • Enterprise class platform for cloud • Intel Nahalem delivers even greater scalability and performance for cloud computing Common Management

16. Bridging the Business Drivers to IT Understand Business Drivers & Needs Define level desired to deliver Assess current capabilities Gap Analysis of current versus desired delivery Roadmap short and long term capabilities and delivery Build the architecture for the specific solutions 1 2 3 4 5 6 UNDERSTAND BUSINESS DRIVERS, NEEDS, and challenges Assess CURRENT CAPABILITIES ROADMAP SHORT AND LONG TERM CAPABILITIES AND DELIVERY You can select from a vertical and horizontal solution catalogue with predefined business best practices Perform the optimization assessments Build a capability level roadmap for the short term as well as the long term DEFINE DESIRED BUSINESS CAPABILITIES TO DELIVER GAP ANALYSIS OF CURRENT VERSUS DESIRED DELIVERY CROSS CAPABILITY CONVERSATION BUILD THE ARCHITECTURE FOR THE SPECIFIC SOLUTIONS Define the desired level of delivery per business driver, based on a 3 phase approach Perform a gap analysis between the current capabilities to the required by the phase selected as the goal Use the architectural guides to assure you can coordinate the adoption of these technologies to drive the short and long term business goals

17. Solution Accelerator Tools Microsoft Assessment and Planning Toolkit (MAP) Infrastructure Planning and Design Guides (IPD) Reduce Compliance Risk Plan Deliver Reduce hardening cycle by 3-12 months Windows 7, Windows Server 2008 and Hyper-V Security Guide Operate Save weeks of server deployment time Track Availability End-to-End Offline VM Servicing Tool (OVMST) Service Level Dashboard Microsoft Deployment Toolkit (MDT)

18. http://www.microsoft.com/optimization Information and Resources Get more information. Take the IO Self Assessment.

19. Assess your IT capability against the models • Prioritize and identify capability gaps required to support your business • Build a multi-year plan with Microsoft that maps to your business and IT priorities • Review and tune with your Microsoft team on an ongoing basis Next Steps The Infrastructure Optimization Journey Visit www.microsoft.com/optimizationfor more details

20. © 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

21. Appendix

22. Case Studies: Windows 7 & MDOP Customers Save Money Annual cost savings/PC • Up to 20% savings of direct IT costs • Up to 75% reduction of PC power consumption • Impressive IT cost savings with MDOP (up to $280/PC total savings potential with user productivity gains of an additional $125 annual savings)

23. Desktop Savings Implementing Best Practices Reduces Spending Desktop virtualization will… LOWER PC and Storage Spending

24. Case Study: Sporton InternationalProductivity Increased by 30% Benefits Situation Solution • $15,000 a year savings using Lync Dial-in conferencing • Reduced travel overall by 15 percent • Improved productivity by 30 percent Sporton wanted to provide an enterprise voice solution to help employees be more productive and communicate more efficiently, and to help it reduce telephony costs. Sporton deployed Microsoft Lync Server 2010 to replace its aging PBX systems and provide enterprise voice across the organization. “We plan to open a new office every year or eighteen months. For each one, we expect to save at least U.S.$30,000 by deploying Lync enterprise voice and an SBA instead of a PBX. – David Feng IT Director, Sporton International

25. Case Study: The Recording AcademyRock Solid Technology - $700k Savings Benefits Situation Solution • Highly available IT infrastructure • Greater IT efficiencies • Licensing savings of U.S.$700,000 over six years • Easy to deploy latest software The Academy wanted to digitize manual processes surrounding the GRAMMY Awards, but had to first modernize and stabilize its IT Infrastructure. It also wanted to better manage remote servers. By using Microsoft licensing efficiencies, The Academy upgraded its entire core infrastructure and added Microsoft System Center data center solutions for better system management. “Our older infrastructure could not accommodate newer services, nor could it deliver the kind of rock-solid reliability that we need for the GRAMMYs.” – Rick Engdahl Vice President of Information Technology, The Recording Academy