Ryan O’Hara Paul Ross Robbie Wright

July 2009

Driving Costs Out Of IT Infrastructure while Increasing Optimization with System Center

2

Dynamic ITEnabling IT Pros and development across the IT lifecycle

Unified and Virtualized

Process-Led,Model-Driven

ServiceEnabled

UserFocused

Standardized Rationalized DynamicBasic

Business enabler

Strategic asset

Efficientcost center

Cost center

People. Process. Technology.

CONSOLIDATION BUDGETREDUCTION

Pressures Are Driving A New Understanding Of Data Center Infrastructure Management

SKILL AVAILABILITY

INCREASING COMPLIANCE

BUSINESS SLAs

SERVICEAVAILABILITY

PHYSICAL ENVIRONMENT

Elevating IT: Enterprise-Wide IT InsightToday’s IT Reality: Siloed Workload Investments

VIRTUAL ENVIRONMENT

35.6 Servers Per FTE

What We Hear From Customers:“Help me to build a single end-to-end view of my Enterprise IT assets”“Enable me to bring the benefits of IT Management to the entire enterprise”

$36.21 Per User

$2,083 Per Server

$58.70Per User

$2, 730 Per Server

Uncovering IT Costs In The Enterprise

Facilities CostsLights, power, cooling, Floor space, per workload

Hardware CostsServer, Storage, & Network Hardware per workload

Software License CostServer, Management and Utility software per workload

Core Server Labor CostsCost of providing managed capacity to support a workload

Workload Specific LaborSpecific workload related operational costs.

Implementation CostPlanning, Project, Configuration and Deployment costs per workload

Core Server Labor CostsCost of providing managed capacity to support a workload

26%

5%

9%

17%

Workload Specific LaborSpecific workload related operational costs.

Implementation CostPlanning, Project, Configuration and Deployment costs per workload

20%

23%

Cutting Management Cost is Key

Configuration Management

(Physical & Virtual)

End-To-End Monitoring

Server Compliance

Data Protection &

Recovery

Data derived from estimates built from multiple sources

Cost Reduction Extends Across Server Infrastructure

Reduce cost per user by 93%

Reduce cost per server by over 63%

Reduce cost per userby over 80%

Manage 170% more servers per FTE

Reduce cost per serverby over 90%

High Value Workloads Core Workloads

40% less cost per user per year

Address the cost reduction opportunity across ALL workloadsOptimization of Core Server management principlesDelivers benefit to high-value and commodity workloads alike

Data derived from Microsoft “Spotlight on Cost” Server Study 2009

Enabling The Enterprise: In Search of IT Vendor

CONFIGURATIONMANAGEMENT

(Physical & Virtual)

DATA PROTECTION& RECOVERY

END-TO-ENDMONITORING

SERVERCOMPLIANCE

A Single View of Enterprise Service Infrastructure“My enterprise assets span both physical and virtual”“My needs extend from the hardware to OS to Application”

Understand Differences Among Vendors

Strong virtualization experience and offering

No Physical Management

Limited Workload Insight HW/VM Knowledge Only Application is black box

Physical & Virtual from Single pane of glass

In-depth understanding of the Workload

• From Network to Application

Best of Breed Knowledge Ships “In-The-Box”

• Best for managing MicrosoftIntegrated set of tools

Broad portfolio of management products

No Deep Virtualization Management Capability

Monetize Workload Knowledge

• Software• Professional Services

Example Scenario: Licensing A Customer Datacenter500 Physical Servers (60% are Virtual Hosts), workload mix of AD/IIS/SQL/MOSS/Exch .and file/print

CONFIGURATIONMANAGEMENT(Physical & Virtual)

SERVERCOMPLIANCE

END-TO-ENDMONITORING

DATA PROTECTION

& RECOVERY

ENTERPRISECONSOLE & MONITORING

STORAGEMANAGER

PROVISIONINGMANAGER

VI3 & VIRTUAL CENTER

$724k $7,035k $2,535K

NO PHYSICAL SUPPORT

NO APPLICATIONKNOWLEDGE

WORKLOAD KNOWLEDGE APPLICATION

MODULES

ENTERPRISEPORTAL

TRANSACTION MONITORING

All Pricing from publically available sources

PRICE*

$1,198Per Physical

Server

$1,198Per Physical

Host

$1,497 2-proc$2,995 4-proc

CAPABILITYLICENSE TERMS

Licensed per physical server

Licensed per device

running Hyper-Vor VMware

Hypervisors.

Up to 4 Operating System

Environments (OSEs) plus host

Licensed Per Processor

running Hyper-V or VMware

Unlimited Virtual Machines plus

host2-proc minimum

Server Management Suites Provide Simple, Low Cost and Flexible Licensing to Align with Windows Server

Managing Physical Server

Low Density Virtualization(Up to 4 Virtual Machines)

High Density Virtualization(Unlimited virtual Machines )

Configuration Management

(Physical & Virtual)

End-To-End Monitoring

Server Compliance

Data Protection &

Recovery

Configuration Management

(Physical & Virtual)

End-To-End Monitoring

Server Compliance

Data Protection &

Recovery

Configuration Management

(Physical & Virtual)

End-To-End Monitoring

Server Compliance

Data Protection &

Recovery

*Pricing Open NL 2 yr SA ERP

Configuration Management

(Physical & Virtual)

End-To-End Monitoring

Server Compliance

Data Protection &

Recovery

Expand cost saving through extending from server monitoring to full server lifecycle management

Opportunity: Drive further costs out of your data center through tool consolidation, license savings, more

efficient operations, and virtualization

Today’s Cost Opportunities in The Data Center

Drive cost reduction through server consolidation and integrated management

Benefits of Full Lifecycle Management

Server Management Lifecycle with System Center

Total Wine Extends Management Infrastructure From Monitoring with Operations Manager to Total Server

Management Lifecycle with SMSE

Replaced Obsolete and Duplicate Tools With Integrated Suite While

Preparing For Virtualization

Improved Reliability of Store Applications Delivering 100’s Hours

of Increased Sales Productivity

82% Reduction in Operational Travel Expenses Through

Adoption of SMSE

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Server Management Suite

Configuration Management

(Physical & Virtual)

End-To-End Monitoring

Server Compliance

Data Protection &

Recovery

Leverage End to End Management for Physical Servers

$648per Physical

$1,304per Host

$648per Physical

$648per Physical

Server ManagementSuite Enterprise (SMSE)

$1,203 per ServerAlso includes rights for

future virtualization:up to 4 OSEs + Parent OS

Customers Already Realizing Value In System CenterCustomers desire to expand the role of System Center to a broader set of management scenarios

Standalone Cost: $3,248 With SMSE: $1,203

Configuration Management

(Physical & Virtual)

End-To-End Monitoring

Server Compliance

Data Protection &

Recovery

Benefits of Consolidation

Server Consolidation with System Center

Saxo Bank Reduced Physical Servers by 36%

Resulting in reduced maintenance and hardware costs, while providing increased agility.

25 % of core applications and 80% of non core applications virtualized

Total Cost Savings$1,450,000 per year

Reduced Hardware And Data Center Costs By Over $1m

Server Management Suite

Enabling customers to accelerate benefits of VirtualizationSMSD enables customers to address virtualized workloads with a broad set of Systems Management capability without incurring incremental cost

Accelerate the Benefits of Virtualization With Management

Server ManagementSuite Datacenter (SMSD)

$1,504 per 2-proc server

$3,008 per 4-proc server

$1,504 per 2-proc$3,008 per 4-procServer Management

Suite Datacenter (SMSD)

$0 incrementalSMSD

$0 incrementalSMSD

$0 incrementalSMSD

$0 incrementalSMSD

$0 incrementalSMSD

$0 incrementalSMSD

$0 incrementalSMSD

$0 incrementalSMSD

$0 incrementalSMSD

. . . . .

Conclusion

Applying server management lifecycle best practices in the datacenter can significantly reduce the server administration costs of customer environments

System Center server management suites offer best of breed functionality for end-to-end management of Microsoft applications as well as heterogeneous resources in the datacenter.

System Center provides customers with simple, cost effective and flexible solutions designed to help reduce costs while achieving datacenter agility

Server Management Suite

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Benefits of Lifecycle Management

Server Management Lifecycle with System Center

Total Wine Dramatically Reduce Operational Expenses Through Adopting the SMSE and Management Best Practices

Replaced Obsolete and Duplicate tools, While Preparing

For Virtualization

Improved Reliability of Store Applications Delivering 100’s Hours

of Increased Sales Productivity

82% Reduction in Operational Travel Expenses

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MONITORINGCONFIGURATIONMANAGEMENT

DATAPROTECTION