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Windows Azure

Windows Azure Update

1. Business Update

How will we grow in FY14?

Create new ways for partners to make money with Windows Azure

Promote StorSimple and Infrastructure Scenarios

Expand Windows Azure footprint with the Australian Region

Australian Regions

Managed/processed through our environment (MS online Services)

2. New Scenarios

EPG | MICROSOFT CONFIDENTIAL

1. Windows Server App CompatSolution

Test/Dev VMs in the cloud

Leverage existing skillset to

move test/dev to cloud

Connectivity with on-premises

data and applications

Common identity

Common dev tools and

frameworks for on-premise &

cloud

Accessed by a geographically

dispersed team

Hyper-VVHD

Deploy

On-premises

Dispersed Teams

Azure StorageSandbox Test/Dev VMs

Saved Disk State

VPN Tunnel

Windows Azure

Windows Azure

On-premises

Test/Dev VMs in the cloud

Leverage existing skillset to

move test/dev to cloud

Connectivity with on-premises

data and applications

Common identity

Common dev tools and

frameworks for on-premise &

cloud

Accessed by a geographically

dispersed team

Dispersed TeamsVPN Tunnel

Hyper-VVHD

Deploy

Azure StorageSandbox SQL Server VMs

Saved Disk State

2. SQL Server Testing InfrastructureSolution

EPG | MICROSOFT CONFIDENTIAL

3. SharePoint Test & DevSolution

On Premises

Web Front End Availability Set(s)

VPN Tunnel

Admin

Domain Controller Availability Set SQL Server

Availability Set

Application Server (Availability Set)

Web App Server Availability Set

Deploying SharePoint Farm on Windows Azure Infrastructure Services

Windows Azure

4. SQL Server DR/Backup on Windows Azure

Business Continuity Solution on Windows Azure

Use for Disaster Recovery

Cloud Backup on Windows Azure

Cloud

Storage

Opportunity

Simple and fast on-ramp to Azure

Active data instantly available locally

Archives less used data to Windows Azure

Recover data from any internet connection

Reduce enterprise storage TCO by 60-80%

3. Windows Azure Managed Services

Your customers want to talk to you about Windows Azure

Source: Morgan Stanley CIO Survey, 2013. “Percentage of Enterprise CIOs Greater than $1B/$10B expecting to use IaaS by YE2014”

CIO Cloud Vendor Preferences Mid/Large Enterprise CIOs Expecting to Use IaaS

20%

13%12%

9%9%4%

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What is changing with

Managed Services in the EA?Enable evolving partner business models

Microsoft Confidential. 18

Old Model Customer Solutions had to be “exclusively branded”

Outsourcing of end-user software was prohibited

Amendment M151 required to enable hosting/outsourcing

New enrolment, new level A CPS

New Model EA language aligned to direct MOSP/WAA language

No branding requirement or outsourcing restriction

Aggregation of multiple services under one EA

Protection against overages

Pricing consistent at customer’s EA price level

Resale of Azure still not allowed – partner must add value

What is our Managed Services offering?

Microsoft Confidential. For internal use only. 19

Managed ServicesEnable Managed Service Providers and System Integrators with cloud services

to host & manage applications that are owned by their End Customers. Not

Resale!

• There must be a Solution that the Partner is managing for the customer

• Access to Azure cannot be the primary benefit to the End Customer

• The End Customer must not be accessing Azure services directly

Examples Infosys manages Coca-Cola’s Payroll application on Azure

Accenture hosts and manages Exchange Server on Azure for BMW

Verizon enables GE to deploy Azure Compute & Storage via Verizon’s

cloud services portal

How have we made the change?1. Enable Azure to be sold via the current EA Outsourcer Enrollment

2. Eliminate separate M151/EWA02 contract for EA Managed Services

3. Update standard Azure EA to include Managed Services T&Cs & allow pricing to be based on Partner’s EA Level

1 Outsourcer Enrollment

2 Managed Services/M151

3 EA Attach/EWA

Not Permitted

Microsoft Confidential 20

• Central deployment portal for on-prem, hybrid and cloud resources

• Single bill for on-prem, hybrid and cloud resources

• Technical support for cloud services along with other IT services

• Cloud services branded by Telco/IT service provider

• Azure sold by Telco, SI, anyone

• Partner

manages Azure

EA billing &

environment

for individual

customer

Consolidated

Billing

Deployment

Portal

Technical

Support

White Label

ResellPure Resell

Outsource

Apps/DC

• Host internal HR application

• Host SharePoint

• Run Online SMB Accounting solution

• Manage applications for end customer

• Host SharePoint for end customer

1st Party

Apps

3rd Party

AppsSelf Host ISV

Manage

Customer

Apps

Host 3rd

party Apps

Partner Scenario Target Channel ProfileLicensing Construct to

useAdvantages

Customer Licensed• Project Based Azure Deployment

• Customer has existing Azure Use

rights

• Services Partner selling to customer who expects to

consume < $24K USD in Azure• Customer Purchased MOSP

agreement

• Partner assists customers to deploy and

consume solutions based on Azure

• Pay as you Go licensing

• Services Partner selling to customer who expects to

consume > $24K USD in Azure or customer already has

EA

• Customer Purchased EA

agreement• Customer can leverage existing

discounts received in EA

Partner Licensed• Partner delivers and supports

customer Solution on Azure

• Partner responsible for end-to-

end customer billing

• Services Partners looking to augment their existing

solutions with Azure

• Less than 12 subscriptions (customers) per MSP in the

initial (year 1) rollout

• Partner Purchased MOSP

(Windows Azure Agreement)

• Enables MSPs to get started with

Windows Azure

• No Upfront commitments on PAY-As-

You-Go.

• Waterfall discounts available for pre-

commitment starting $500/mo

• E.g. 23% discount for $6K annual

(monthly pay) commitment at the

subscription (customer) level

• Delivers solutions that consume high volumes of Azure,

primarily to customers in EPG & Corp Accounts

• Partner has ability to aggregate Azure services to

multiple customers

• Partner wants to leverage their own existing EA

• Partner Purchased EA

• Enterprise Portal offers MSP ability to

manage multiple accounts in a single

place

• Aggregate benefits across customer

subscriptions

• Partner can qualify for deeper EA

discounts by aggregating customer

spend

What is the best way to license Azure? EA or MOSP?

Standardize IT to reduce complexity

Reduce hardware and license costs

Protect data, scale geographically

Service Provider Opportunities

Substantial cost savings on DR

Provide low cost development infrastructure

Learn more

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https://training.partner.microsoft.com/learning/app/management/LMS_ActDetails.aspx?ActivityId=855139

4. Azure Starter Offers

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Value: Offers

Offer commit1

Promotional

Credit2

Deployment

Accelerator3

$0 $4,000

$2,500 $9,000

$8,000 $14,000

$20,000 $22,000

Starter Offers for IaaS/ PaaS (Valid Though March 31 2014)

1 Customers will have the option of using their Azure commitment to purchase an Azure

support program. Two options are available – Azure standard support at $3600 and Azure

pro-direct support at $12K

2 Available from Nov 1; any monetary bonus remaining at end of annual subscription period

will expire; one bonus per qualifying enrollment, per customer

3 Partner reimbursement provided up to 4 months from date of Azure purchase, Funds paid

directly to qualified partner; Existing Software Assurance (SA) customer can combine

Planning Services voucher(s) with offer to extend scope of work. Valid from September 1,

2013 to March 31, 2014

4 CPS Units represent the annual quantity of the Monetary Commitment SKU (6QK-00001)

that must be purchased to meet the offer commitment requirement. Purchase of Support

will offset the Commitment purchase amount

For more information visit: http://azuresales

$25,000(21 CPS units)4

$50,000(42 CPS units) 4

$100,000(84 CPS units) 4

$200,000+(167 CPS units) 4

• Starter offer can be combined with StorSimple offer

(e.g., a customer can make a $150K commitment made

up of one $100K Starter offer and one $50K StorSimple

offer)

MICROSOFT CONFIDENTIAL

Value: Offers

$100K for ~100TB1

with 7020 appliance2 OR

7520 appliance2 (no additional cost)

$50K for ~50TB1

with 7020 appliance2 (no additional cost)

1 Approximate amount of storage. This varies based on discounts, Azure storage type selected (local vs. geo replicated) and usage of other Azure services.2 Appliances built and distributed by Xyratex

$50K/year on Azure EA for storage

• Covers 62TB of Azure storage through StorSimple

system for most use cases

What customers are paying for

$100K/year on Azure EA for storage

• Covers 125TB of Azure storage through StorSimple

system for most use cases

What customers

get at NO

additional cost

7020 appliance (worth $70K)

• Gold support for 1 year with Next Business Day

(NBD) parts

Option-1: 7020 appliance (worth $70K)

• Gold support for 3 years with NBD parts

Option-2: 7520 appliance (worth $120K)

• Gold support for 1 year with NBD parts

Additional costs

(Xyratex charges customer directly)

• $5,000 per year for Gold support in years 2 & 3

• Additional $2,500 per year for upgrade to platinum

support

• Additional $10,000 for upgrade from 7020 to 5520

Option-1 – 7020 with 3 years of Gold support

• Additional $7,500 for upgrade to platinum support

for 3 years

• Additional $10,000 for upgrade from 7020 to 5520

Option-2 – 7520 with 1 year of Gold Support

• $7,500 per year for Gold support in years 2 & 3

• Additional $2,500 per year for upgrade to platinum

support

Offers valid till December 31st, 2013