Value Added Partner Opportunities For The Mid-market

Presenter Information Goes Here

Date Goes Here

Agenda

•Industry Perspectives

•Mid-Market Company Background & Priorities

•Partner Opportunity

•Appendix

4

Industry Perspectives

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The roughly $29 billion increase in SMB IT spending in 2011 will be close to the $30 billion gain of 2010, but with some dramatic shifts…with interest in cloud computing and virtualization of on-premises resources reaching new levels.

Raymond BoggsVice President of SMB

Research IDC

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Time to Refresh

60Virtualization

40Upgrade Nirvana

72Keeping the Lights On

70percent of mid-sized companies still run Windows Server 2003

percent of the IT budget is traditionally consumed by ongoing operations versus innovation

percent of mid-sized businesses are seriously looking at virtualization

percent of mid-size businesses think that it is time to refresh their PCs and Servers

TODAY’S Situation

Source: Internal Microsoft study, 2011

Source: US Small Business IT Priorities and Marketing Report, Techaisle Source: US Small Business IT Priorities and Marketing Report, Techaisle

Source: “Focus Your I&O Budget On Three Key Initiatives,” Forrester Research, Inc., July 16, 2010

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Customer Background And Priorities

8

Mid-Market Target

Companies with:

25 – 250 PCs Aging Servers Minimal

Virtualization

Business Decision Maker and IT Pro make

IT decisions

9

Common Midsize Business Goals

Simplify IT Save Money Grow Business

10

Top IT Initiatives Over Next Two Years

Migrating From Older Technologies1

Maintaining & Enhancing Current IT Infrastructure2

Controlling IT Costs3

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Partner Opportunity

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Microsoft is the natural fit for our customers for virtualization. With a solution for both the operating systems, hypervisor, and management of physical and virtual solutions, the platform is more complete than any competitor.

Dave SobelCEO

Evolve Technologies

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Get Started Today

Be the Trusted Advisor by assessing customer’s needs

Upgrade to Windows Server 2008 R2 SP1 with Hyper-V

Virtualize and Consolidate with Built-in Hyper-VCentralized IT Management with System Center

Essentials

1 2

3 4

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Why Upgrade? Top Five Reasons

Failover Clustering and Identity Management

Hyper-V is Built-into the OS

RDS, VDI, and BranchCache

Security & Availability

Virtualization Branch Office Management

Better together with System Center

Essentials 2010

Applications

Optimized to run SQL Server,

Dynamics, and other apps

1 2 3 4 5

Virtualization Is Here To Stay: The Virtualization 3.0 Ecosystem

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$0.00

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

$70,000.00

2009 2010 2011 2012 2013

External cloud virtual servers

Support services

Integration/consulting/training

Storage software (x86)

Storage systems (x86)

Server hardware (EPIC, RISC, CISC)

Server hardware (x86)

Virtual server management

Virtual machine software

$61.7B by 2013

12.9% growth

Source: Market Analysis Perspective: IDC Enterprise Virtualization Software – Mainstream Adoption of Virtualization to Enable Cloud and Mobility, 2011 and Beyond, March 2011 (#227532)

WW Virtualization-related Ecosystem

Revenue By Technology Market

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Why Microsoft Virtualization?

Desktop to Datacenter

Complete Managemen

tBest TCO / ROI

It’s the Platform You

Know

Virtualization is Built-in

Tools you know

Full range of products & solutions

Physical and Virtual Management

Lower costs upfront & ongoing

Easier integration w/ existing systems

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Partner Profitability [Over Time]

Per Project, VMware delivers more revenue and margin…

… leading to higher Practice revenue and margin with Microsoft

… but Microsoft gives you a higher probability of winning…

VMware Microsoft

34 25

91 74

12599

Revenue Cost Margin

VMware Microsoft

728 948

1,937

2,821

2,665

3,769

Revenue Cost MarginVMware Microsoft

2040

Win Rate

Mid-Market Project Revenue and Margin ($000) Mid-Market Deal Win Rate (%) Practice Revenue and Margin ($000)

Analysis of a typical US partner competing for representative deals of mid-market business customers.

Note: Assumes competing for 50 deals in year 3 (after practice has fully ramped up), with 80% Mid-Market and 20% Large Enterprise. See Economic Model for more details.

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Partner Profitability

$5K in Microsoft System Center

= $170K in Solution Sales for our VAR and SI Partners $-

$5

$10

$15

$20

$25

$30

$35

Professional Services

Other Software

Business Applications

Security Products

Storage Products

Networking Products

For our Partners, every $1 in Microsoft Server Virtualization software generates an additional $34 in sales of complimentary Products & Services

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Apples To Apples With VMware

ESXi3 ESX4.1 U1 Hyper-V Server 2008 R2 SP1

Price $0 $0 $0

Bare-metal Hypervisor

x86 x64 x64

Boot from Flash Yes Yes Yes

Host Processors 32 Logical CPU’s

160 Logical CPU’s

64 Logical CPUs

vSMP Support 4-way 4-way 4-way

Host Physical Memory

256GB 1TB 1TB

Virtual Machine Memory

64GB 255GB 64GB

Free Remote Management Client

Needs vCenter

Needs vCenter

YES

High Availability / Failover Clustering

Needs vCenter

Needs vCenter

YES

Dynamic Memory No No YES

High-End Graphics for VDI

No No YES

Host based console for configuration and troubleshooting

No No YES

vSphere Essentials

1

System Center

Essentials2

vSphere Essentials

Plus1

System Center

Essentials Plus3

Price* $495 $412 $3,495 $1,339

Cost Difference 1.2x more ← 2.6x more ←

vSMP Support 4-way 4-way 4-way 4-way

Physical Memory 256GB 1TB 256GB 1TB

Physical Processors

2 8 2 8

Cores Per Processor

6 No limit 6 No limit

System Update Yes (Host/OS Only)

Yes (Host/OS Apps)

Yes (Host/OS Only)

Yes (Host/OS Apps)

HA / Clustering Yes (VM only)

Yes (Servers, PCs,

VMs, Apps)

Live Migration Yes Yes

Backup / Recovery Yes Yes

In-guest Monitoring

Yes Yes

DRS / PRO Yes Yes

OS Deployment Yes Yes

SW Deployment Yes Yes

HW / SW Deployment

Yes Yes* All prices are based on three servers, two processors, with management server costs, and no operating system costs.1 – VMware does not break out software from server management license cost in its SMB bundles2 – Server software = $100, Server Management License for three years = $100 x 33 – SCE Plus includes System Center Data Protection Manager 2010. Server Software = $100. Server Management License for three years = $400 x 3

Lower TCO Compared to VMware

Free Hyper-V with more Features

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Microsoft a leader in x86 Server Virtualization Infrastructure

Gartner, Inc. (www.gartner.com), an independent technology research and advisory company, published a report titled Gartner Magic Quadrant for X86 Server Virtualization Infrastructure* by analyst Tom Bittman on June 30, 2011 and named Microsoft as a Leader in this category.

The report also cited Microsoft’s success in this category among midmarket customers, noting its “strength of solution and price for midsize enterprises.”

*The Magic Quadrant is copyrighted 2011 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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My customers are looking for me to provide long term manageability of their IT infrastructure. Microsoft and its virtualization and management technologies get me there.

Jamison West Founder & CEO

Arterian

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Your Opportunities Beyond Virtualization

Upgrade & Virtualization

Managed Services

Application Migration Services

Upsell & Cross-Sell

Opportunities

Reusable IP

TODAY: Drive immediate opportunitiesTOMORROW: Differentiate via value

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Path To Greater Client Relationships

Significant server (and PC) upgrade opportunity

today.

Virtualize customer’s infrastructure – it’s built-in!

Perfect opportunity to upgrade

to SQL Server 2008 R2

SharePoint 2010 is changing the way people collaborate

Dynamics is optimized for Microsoft virtualization

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Path To Success

Plan EnableCreate

Demand Sell Deploy

Show customers how virtualization can address business challenges.

Get up to speed on how Windows Server Hyper-V and System Center Essentials can drive value.

Take advantage of the huge upgrade opportunity through marketing and sales outreach.

Use tools like MAP to help customers see the potential value of virtualization.

Virtualization and better management open the door to bigger opportunities.

• Work prospect lists

• Target good offers

• Get training• Practice selling

• Targeted campaigns

• Run local events

• MAP Assessments

• Use case studies

• Use Microsoft support

• Ask for case study

• Windows Server Comparison Site• System Center Essentials Tech Ce

nter

• Windows Server Learning Paths• System Center Essentials Learning

Paths• Technical Presentation to SCE

• Microsoft Mid-Market Server Upgrade & Virtualization Campaign

• Microsoft Pinpoint Marketplace

• Microsoft Mid-Market Server Upgrade & Virtualization Campaign

• Microsoft Assessment and Planning (MAP) Toolkit

• Microsoft Deployment Toolkit (MDT)

• Security Compliance Manager (SCM)

Complete list of resources at http://partner.microsoft.com/serverupgrade

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Some Questions

How do you envision the Microsoft Virtualization and Systems Management competencies playing a role in your business?

How do you currently assess customer upgrade and virtualization opportunities?

Would you be interested in working with us to develop a plan to kick-start a Microsoft Virtualization Practice in your organization?

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Appendix

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Better Together

• Built in Hyper-V virtualization

• Convenient virtualization rights

• Built-in high availability

Cost Effective Platform for Growth!

• Built in Virtual Machine Manager

• Simplified, single console

• New licensing offer for mid-sized companies

Physical & Virtual Management!

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Benefits Of Migrating From Windows Server 2000 & 2003

Simplified Management

Better NetworkingIncreased

Efficiencies• Best Practice Analyzer

keeps all your server configurations in up to date

• Updated Backup utility allows for more granular backup jobs

• Built-in virtualization makes it easy to consolidate workloads

• 64-bit Operating System provides higher performance

• Lower WAN costs via an easy-to-configure and easy-to-maintain caching solution

• BranchCache caches files at branch to reduce WAN utilization

• Secure remote access sessions via DirectAccess

• Hardened kernel reduces attack surface

• Core Parking sets processor cores into sleep mode when under-utilized

• Administrators can design power policies to ‘throttle-down’ servers during off-hours

• Decade of Support - Windows Server 2008 R2 is fully supported

• Vibrant 64-bit ISV community gives great future options

Windows Server 2000 is END of LIFE and Windows Server 2003 is at END of SUPPORT (7/2010)

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HP Virtualization Smart Bundles With Hyper-V

HP ProLiant G6/G7 Server

Windows Server 2008 R2 with Hyper-V

HP Storage and Networking

HP Insight with System Center Essentials 2010

Decreased Cost + Simplified IT

End-to-end Virtualization & High Availability

One Console to Manage Physical & Virtual

EnvironmentsThe first end-to-end virtualized environment that delivers application high

availability without external shared storage

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Dell 3-2-1 Reference Configuration

Two Dell PowerEdgeTM R515 Servers

One Dell PowerEdge R415 Server

Two Dell PowerConnectTM 6248 Switches

One Dell EqualLogic© PS4000XV Storage Array

3 2 1

Packaged with the following solutions: