Windows Server 2012 f or Hosting Service Providers

1. Scott Ottaway Industry Director Windows Server 2012 for Hosting Service Providers

2. Hosting Offers Powered by Microsoft • Windows Server 2012 for Hosting Service Providers • Comprehensive Cloud Platform • Cost Efficiency • Expanded Services • Why Windows Server 2012 • Call to Action Agenda

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

4. Your Customer Offers Powered by Microsoft Service Offerings & Managed Services Web Hosting VM Hosting Database Hosting Application Hosting Desktop Hosting Definition Windows and remote application hosting Virtual server hosting including operating system Relational database hosting Microsoft and non-Microsoft application hosting Web site and web tier hosting Examples • Rented Virtual Servers Shared or Dedicated • Disaster Recovery • Rented virtual database servers • Database-as-a-Service • Lync, SharePoint, Exchange, Dynamics • CRM, ERP, LOB apps • Custom LOB apps • Ecommerce sites • Company websites • Gaming & entertainment • Windows desktops for students or call centers • Mobile sales team apps

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

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

7. Comprehensive Cloud Platform

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

9. Windows Server 2012 Advantage for Hosting Service Providers

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

11. Better Margins with Microsoft vs. VMware VMware takes 15% of revenue per VM from you Hosting Revenue and Margins for a Single VM Rented for 365 Days Per VM You can charge, $1,051annual revenue (VM with 2GB RAM @ $0.12/hr) Microsoft Potential Service Provider Profit SPLA Core Infrastructure Suite Cost VMware $851 $1,009 Potential Service Provider Profit VMware Service Provider Program (VSPP) 3.0 Premier Cost VMware Takes 15.1%of revenue • Microsoft vs. VMware Annual Licensing Costs for a single VM rented for 365 days based on a 50 Server Deployment, with 2GB per VM and 2400 VM instancesat maximum capacity. • Comparison Windows Server + System Center for application, OS & HW management running on either Hyper-V or VMware ESX More margin $159 MS Takes 4% of revenue $42 $42 Microsoft VMware

12. Cost Efficiency

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

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

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

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

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

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

19. Expanded Services

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

21. VM Hosting:Profitability through Lower TCO • Higher-Scale, Higher Performance, and Lower-Cost • Improved scalability • Unlimited virtualization for Datacenter Edition • More choice to use commodity HW devices (storage/network) • Storage and Network performance improvements • Multi-Tenancy & Isolation • Resource Metering • Security and isolation with network switch and improved ACLs • Dynamic placement workloads across premises • High Availability and Disaster Recovery • Live Storage Migration • Shared Nothing Live Migration • Hyper-V Replica • Resource Metering • Average CPU / average physical memory usage • Minimum / maximum memory usage • Incoming / outgoing network traffic

22. VM Hosting: Disaster Recovery with Hyper-V Replica Hyper-V Replica enables new disaster recovery solutions. • Rapidly Growing Business Opportunity • Expand customers’ datacenter from on-premises to hosting SP’s datacenter • Premium service within Hosting SP’s datacenter • Disaster recovery solution • Storage-agnostic and workload-agnostic solution • Efficiently, periodically, and asynchronously over IP-based networks • Works across different storage systems • Service Provider benefit • Identical storage not required. Leverage existing storage hardware • Replication solutions at the right cost

23. Web Hosting and IIS 8 Scalability and Performance Manageability Open Platform Top Features of IIS 8 IIS scalability improvements Increased Site Density, Configuration performance improvement for multi-tenant scenarios, SSL via SNI, Memory via NUMA advances Improved support for asynchronous operations and client-driven Web apps ? Designed for rich HTML5 applications. SSL Manageability via Central Certificate Store IIS Sandboxing and CPU Metering

24. Desktop Hosting with Remote Desktop Services • Great desktop experience even over slow bandwidth! • RemoteFXfor WAN, Adaptive Graphics, Multi-Touch, USB Redirection, and Media Remoting • Metro-style Remote Desktop App • Personal User Disk • Access virtually anywhere from any device with full Windows experience • PCs and laptops, Mobile tablets, Thin clients, Non-corporate PCs, USB flash drive-based flexible workspaces, and session or virtual desktop environments • Simpler deployment and management • Simplified deployment and management of pooled and personal desktops • Lower-cost storage options • Use of either storage area network (SAN) or direct attached storage (DAS) for pooled scenarios

25. DEMO Desktop Hosting

26. Core Infrastructure Suite (CIS) Saves You MoneyOne license for your entire service provider cloud infrastructure CIS Standard CIS Datacenter Standard Standard Datacenter Datacenter Ideal for non-virtualized & dedicated server offers Ideal for highly virtualized offers • Cost Savings: • Only 16% more over Windows Server standalone licenses • Unlimited end-to-end management and unlimited virtualization for one low price with DC edition. • Per-proc based licensing for virtualization scenarios. • Unlike VMware, no increase in licensing costs as VM density increases. • CIS Standard optimized for dedicated server offers.

27. Why Bet On Microsoft Cloud Platform More Customers MoreServices More Efficiency “Microsoft knows they need to be very active in the cloud. And System Center 2012 will be one of its bigger power playsthis year.” David Marshall, InfoWorld “Nothing from Microsoft, and I mean literally nothing has everbeen this ambitious.”  Jason Perlow, ZDNet Windows Server 2012 • “SQL Server 2012 delivers ROI of up to 189% with a 1-yearpayback period.” Forrester Consulting Study, Total Economic Impact of SQL Server 2012 Upgrade, March 2012

28. Next Steps… • Download & evaluate • Windows Server 2012 • System Center 2012 • Learn • Windows Server 2012 datasheet • Windows Server 2012 whitepaper • System Center 2012 datasheet • System Center 2012 whitepaper • Launch new services • VM Hosting with Windows Server 2012 • Hosted Desktop with Metro UI • Managed application hosting with System Center 2012 • Promote Your Services • Plan go-to-market strategy as • Microsoft launches Windows Server 2012