Growing the SMB Server Opportunity with MicrosoftBob BreynaertWW OEM Server SalesMicrosoft Corporation

OEM01

Growth Opportunities

Virtualization

Microsoft Investments and Market Momentum

The Cloud

High Density Computing, PaaS, and SaaS

Core Infrastructur

e

SMB First Server and Storage Opportunity

SMB Server Opportunity OverviewCurrent trends and revenue opportunities

SMB Market OpportunityCore infrastructure, virtualization, cloud

Volume server share grows to 90% of x86 HW Market

(x86 hardware, <$US 5K)

2007Q1

2007Q3

2008Q1

2008Q3

2009Q1

2009Q3Q110

Q310Q111

Q311

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2,200,000

2,400,000

x8

6 u

nit

s,

90% Volume Share

All x86 Server

Sub $5K x86 Server

Source: IDC Worldwide Quarterly Server Tracker, Q4 2009 Release

Virtualization – A Sound Investment

2007 Q1

2007 Q2

2007 Q3

2007 Q4

2008 Q1

2008 Q2

2008 Q3

2008 Q4

2009 Q1

2009 Q2

2009 Q3

2009 Q4

9%

13%

17%

21%

YoY V

irtu

al In

stance

s

Source: IDC Worldwide Quarterly Virtualization Tracker, Q4 2009 Results

SMB Cloud Momentum

Source: IDC's North American Application Development and Deployment Cloud Survey, 2009

10–99 Emp 100–999 Emp

0

5

10

15

20

25

30

Using

Piloting

Use in 2010

Use in 2011/12

Evaluating

75% Volume Share

Perc

en

t A

dop

tion

Telco/RetailSelf IT

System BuilderPartner IT

SMB Selling Motion

Foundation StandardEnterprise

“SBS 7” Classic SBS“Aurora” Cloud EnabledC

OR

E

INFR

ASTR

UC

TU

RE

New

Royalty OEM

ChannelsSystem Builder

Standard Enterprise

Only

Essentials 2011Virtual Machine Manager 2008 R2 Work Group

Enterprise Datacenter

NewNew

VIR

TU

ALI

ZATIO

N

Workgroup (Partner IT)Standard (Partner IT)Enterprise (Partner IT)

OEM SMB Server Product RoadmapMapping products to selling motions

Expands partner scale and scale outCreates new annuity selling opportunities Up level value to your customers

High availability backed by Microsoft expertise

Simplifies customer support and service delivery

The CloudFuels Microsoft and Microsoft fuels the Cloud

WW SB with PCs 36M

No Server 90% - 32.4M

More than 5PCs11.7M1-4 PCs

1+ Server10% - 3.6M

Broadband, multi-PC SBs without a server

Source: AMI, GMV2H09 Refresh,  2009 Market Opportunity Model: 2008-2014AMI, Server Market Opportunity, Consumers and 1 to 249 PCs Businesses, June 2010

36M small business entities worldwide. 90% (32.4M) do not own a server

First Server market is expected to grow at 2% ahead of x86 ($18B opportunity)

44% of SMB likely to move to SaaS to pay for capabilities as needed.

1

2

3

Bridging the SMB Cloud OpportunityLanding software + services through small business server

Code Name “Aurora”

Jim BrisimitzisWW OEM Server Product ManagementMicrosoft Corporation

DemoCode Name “Aurora”

Mission Critical Requirements

Continuous AvailabilityHighest possible uptime (99.999%+)No loss of dataNo single point of failureFull function “out of box” solution

Solution Requirements

1 year ROI via elimination of 3rd party fees and telecommunication chargesFamiliar Windows environment their technical personnel can use but for a mission critical environmentFlexibility for new features and to move/add ATMs (80 total)

ProductsMicrosoft Windows Server Enterprise EditionMicrosoft SQL Server Standard EditionStratus ftServer Systems Stratus ftScalable StorageFiserv LynxGate ATM Management Software

Credit Union achieves 5 “9s” performance for new 80 branch ATM network“There are quite few things we wanted: new flexibility, reduced costs, added functionality, more

personalized service….We are counting on the Fiserv and Stratus solution to help us get where we want to be.”

Arthur Harper, Vice President, Electronic Services

Mission Critical Core InfrastructureMid-market customer case study

Systems Management Forecast

Microsoft Sales MomentumEarly Adopters

Microsoft Virtualization MomentumGrowing industry impact for Hyper-v and System Center

1

2008 Q1

2008 Q2

2008 Q3

2008 Q4

2009 Q1

2009 Q2

2009 Q3

2009 Q4

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

YoY G

row

th

Strong Virtualization Spending

2007 Q1

2007 Q2

2007 Q3

2007 Q4

2008 Q1

2008 Q2

2008 Q3

2008 Q4

2009 Q1

2009 Q2

2009 Q3

2009 Q4

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

Spend in $

US

Source: IDC Worldwide Quarterly Virtualization Tracker, Q4 2009 Results

Recession Resistant

Superior Value

Source: IDC Worldwide System Management Software 2010–2014 Forecast

2 3

2009 2010 2011 2012 2013 20140

1,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

Mainframe

Unix

Linux/other open source

Windows 32 and 64

OtherRevenue $

US M

Hyper-V Adoption growing faster than VMware

Virtualization spending strong and growing!

Windows systems management market growing faster than other platforms

1

2

3

Source: IDC Worldwide Quarterly Virtualization Tracker, Q4 2009 Results

Launch Partners

OEMs System Builders

Announcing Future

Availability!

Microsoft Virtualization MomentumGrowing platform opportunity through OEM

Certified SMB Virtualization Platform

Sean StaceyAcer Group

Announcing

Acer Group Virtualized SolutionsTailored to address customer needs

Target Customer Needs Gateway (part of Acer Group) & Microsoft Solution Bundles in EMEA

MA

INSTR

EA

MEN

TR

Y L

EV

EL

PO

WER

LEV

EL

Small Business with basic virtualization

needs

Midsize customers with standard virtualization

needs

Midsize customer with advanced virtualization

needs

GR38X (2P Rack Server)

GW2000ht (2 node, 2P)GR585 (4P Rack)

GN1600 (NAS Storage)

GW2000h (4 nodes, 2P)GS2040 (SAN Storage)

Acer Group and MicrosoftCertified customer ready solutions

Acer Group will support you by providing technical and sales guidance on promoting these configurationsThe solutions will provide end to end virtualization capabilities certified and tested to simplify deploymentThese configurations have been specifically chosen in collaboration with Microsoft, focusing on SMB virtualization needsDifferent customer ready solutions that can match your customer requests and enable new business

Acer Group Virtualized SolutionsLearn more!

Meet Acer Group Experts:Sofitel Lafayette Square Hotel806 15th ST NW Washington DC 200055:30 to 6:30 pm

Gateway HW and demonstrations availableDrinks and appetizers will be served

1. Training Resources (OEM Training Zone, Partner Network, & Beyond the Box)

2. Global SMB server campaign (Simplified IT)

3. Global Product Launches (SBS 2011 & SCE 2010)

4. Going Cloud with Microsoft (SBS 2011 “Aurora” & Microsoft Online Services)

Microsoft Sales SupportLeveraging Microsoft resources to sell!

Thursday, July 15thGrand Hyatt, Grand Hyatt, 1000 H Street NW | Tel: 1-202-582-1234The interactive sessions are your chance to get 1:1 time with a Microsoft representative for each of these topics

Roosevelt Room

Cabin John Room

How to Increase your Government Business

Healthcare - Selling to the MD

Learn the Education Game

PC Essentials/MS Advantage

Communications

Partnering to Win: Growth Strategies for Named OEMs

The Green Initiative – Microsoft Authorized Refurbisher Program

1:30PM to 3:00PM 3:30PM - 5:00PM

How to Increase your Government Business

Healthcare - Selling to the MD

Learn the Education Game

Microsoft Office

MPN

Communications

Server Solution Trends

Partnering to Win: Growth Strategies for Named OEMs

YOUR FEEDBACK IS VERY IMPORTANT TO USSubmit your Session Evaluation for a chance to Win!www.digitalwpc.com/evals

Win a chance to spin the prize wheel!Located in the Microsoft Partner Network Expo Booth #484

ASUS Notebook PC Microsoft gear2011 Convergence Pass

Windows 7 4-port Hub

Get Connected With Microsoft® Pinpoint™Connect with customers who need your applications and services

More details at www.Pinpoint.com/GetListed

Enter to win your choice of one of FIVE prizes! Multiple winners!

Customers visit Pinpoint daily looking for partners.Are you there?

Complete profiles are 10x more likely to get prospects

Be automatically entered to win — act by July 31Create a new company profileCreate an application or service profile, orGet a customer review

© 2010 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.