Microsoft Azure in Open LicensingPartner readiness deck

The Cloud Opportunity

“Roughly one quarter of SBs and one half of MBs plan to shift their budgets to more cloud spending over on-premise spending”

-AMI

Annual Recurring Revenue for MSPs2

Reduction in Costs for SMBs moving to IaaS1

“Partners are transforming their business to increase the services they offer to SMB”

- Forrester Research, 2013Windows Server 2012 Partner TEI

-50% +28% YoY

 $1. McKinsey&Co Winning in SMB Cloud, Jul 20112. Forrester MSP Market Overview, May 20123. AMI Partners Mar 25th 2012, US SMB Trends & Server Market Insights

2

Microsoft Azure

App services

Network

Storage

Compute

Caching IdentityService

bus Media CDNIntegratio

n HPC Analytics

Virtual machines Websites

Cloud services

Mobile services

SQL database HDInsight Tables

Blob storage

ConnectVirtual

networkTraffic

manager

Usage-based services• Build applications using any language, tool, or framework

• Integrate public cloud solution with the existing IT environment

• 99.95% monthly SLA• Automatic OS and

service patching

An open and flexible cloud platform that enables you to quickly build, deploy, and manage solutions across a global network of Microsoft-managed datacenters.

3

Data Backup in the Cloud Deploy Applications within VMs Host Websites

Key Azure Scenarios

Provide easy, scalable data backup in the cloud• A range of applications: file

servers, SharePoint, SQL Server, Exchange

• Encrypted backups, Global Geo-redundant datacenters

• Quickly and easily provision more storage for your customers as needed

 

Leverage Microsoft Azure to quickly deploy customer applications inthe cloud• Cut infrastructure costs&

Reduce IT management burden• Deploy Microsoft Workloads

(SharePoint Servers, SQL Server, Domain Controllers) as well as 3rd party business applications

 

SharePoint

SQL Server

Databases

Orders

Product

AP

Business Application

s

CRM AcctHR

Virtual Machines

Grow your business helping customers move their websites to the cloud with Microsoft Azure• Quickly build, deploy, and

manage websites on an open and flexible cloud platform

• Offer the peace of mind from hosting on a global network of Microsoft-managed data centers

4

Local currencies

Global datacenters

Global support

24 x 7 x 365 support Over 1 billion customers, 20 million businesses 90 markets worldwide 280 years of combined industry experience in infrastructure, security, product dev, and global ops

Local account teams

₩ ¥

€ руб

$

$£

$

Rp

TL

chf

krkr

$R$

$

Microsoft Azure

5

What is Azure in Open?

Monetary commitment valid for 12 months

Applicable to any Azure Service eligible for Monetary Commitments

Business processes follow existing Online Services in Open

Available August 1, 2014 (with a price list preview on July 1, 2014)

6

Azure in Open – The DetailsOne Monetary Commitment SKU, available in unlimited quantities

Customers can purchase additional credit for Azure services at any time

Can be used against any Azure service* within 12 months from the date of activation

Available in countries with Open Volume Licensing program partners and that offer Azure Direct

7* eligible for Monetary commitments

Azure and Office 365 in Open – Comparison

SKU Structure Single SKU used for any eligible pay-as-you-go Azure ServiceUnique SKUs for each Office 365 Plan, as well as Add-ons

Monetary Commitment that expires 12 months from activation

Customers pre-pay for 12 months of service

Billed Revenue: Value of total purchase

Adjusted Revenue: Pro-rated recognition (at launch), eventually move to consumption-based

Billed Revenue: Value of total purchaseAdjusted Revenue: Recognition begins on service activation with daily revenue recognition

Aligned to cloud channel incentives for managed partners & distributor margin (The FY15 guide will be released in June for the Global Channel Incentives Guide)

All Online Services in Open follow existing business processes

Leverage existing Distributor and VAR reporting constructs

• Single SKU provides flexible ‘building blocks’ to scale partner business or customer services

• Top up and upsell opportunity for additional services• Partners drive consumption with ongoing customer

engagement

• Specific SKUs purchased for each service offering• Renewal motions have annual anniversary• Incremental seats added shift customer end

dates

Commitment

Revenue Recognition

Margin Structure

Business Processes

Reporting

Channel Impact

8

Azure in Open: Setup and Portal Experience

9

Renewal process (preferred)

Customertops up account using credit card.*

Clicks on “recharge now” in Azure portal and credit card option is available.

Reseller recommends renewal

Distributor

Order is

placed

Reseller/customer receives email with link to VLSC and Azure portal

Customer obtains 5x5 token key from VLSC

Customer adds key under “Add Azure Credits” in Azure portal

Customer completes verification process

Reseller or customer activates credit with token from VLSC

Reseller or customer views account status and sets up balance alerts

VERIFICATION ACTIVATION MANAGEMENTReseller or customer renews when 12-month period ends or balance is consumed

RENEWAL

1 2 3 4

Purchase order

EDI/ MOET

For Emergencies

*Credit card top up will be available shortly after launch

Why Azure in Open?Low barrier of entry with no investments in complex billing systems

A consistent, familiar licensing option for cloud services along with your on-premises solutions

A flexible, consumption-basedpurchasing model

New opportunities to grow margins and deepen customer relationships

Capitalize on the opportunity to incorporate the cloud into your solutions and services

10

Azure Purchasing Options

Pay As You Go

Zero upfront, cancel anytime

No long-term commitment

6- or 12-months

Monetary Commitments starting at $500/mo

Longer-term

Offers additional discounts and terms as part of a deeper commitment to the platform

Direct on azure.Microsoft.com Enterprise Agreement

12-months

Flexibility with Volume Licensing through a familiar vehicle for SMBs

Opportunity for partners to earn margins/incentives

Open Licensing Programs

11

The Benefits of Selling Azure

Increase profitabilitywith new lines of business in the cloud

Deliver the right solutions and servicesto your customers

Build and deployquickly on a familiar platform

$

The best path to capitalizing on the major new business opportunities enabled by cloud computing.

12

Why MicrosoftMicrosoft offers compelling competitive differentiation to customers

Single vendor across clouds – private, public and hoster

Single point of support for infrastructure, OS, services, and applications

Tenured experience and enterprise credibility

Single vendor for Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS)

SharePoint, SQL Server, and Windows Server run best on Microsoft Azure

13

Get Started – Next Steps for PartnersSign up for Ramp Up virtual event& get the technical skills you need

http://aka.ms/AzureOpen

http://aka.ms/SMBLearningPath 

Find marketing content on Ready-to-Go

http://aka.ms/readytogo/azure

http://aka.ms/readytogo/bizanywhere

http://aka.ms/readytogo/datagoldmine

http://aka.ms/readytogo/belean

http://aka.ms/readytogo/cloudoptimize

14

Join the Cloud Partner Community group on Yammer

Start Testing Azure Now – Using IURs

What to Test? Azure Scenarios for SMB

Why?

Develop expertise now in a controlled environment

using $100 of monthly Azure credits at no charge

Azure Benefits through MPN (MAPS)

Azure Benefits through MSDN

Where to Start?

Partner Programs, Azure Technical Scenario 101’s

Azure 101’s

Azure Backup – Virtual Machines – Active Directory –

Websites