Windows Server 2012for Hosting Service Providers

Prepared for PROSPECT NAME/COMPANYPresented by YOUR NAME/COMPANY Date PRESENTATION DATE

[Your company name and brief overview] [Brief value proposition… i.e. “Monetize the cloud with Microsoft

Platform + Desktop Hosting (Note: there will be room later to talk about specific offers)]

Introduction

Agenda

The Opportunity Hosting Offers Powered by Microsoft Windows Server 2012 for Hosting Service Providers– Comprehensive Cloud Platform– Cost Efficiency– Expanded Services

Windows Server 2012 Licensing Next Steps

Hosting Leads Shift to Cloud

Source: Microsoft, Spring 2012

Server Instances Install Base (Physical + Virtual)

Off-premises instances will grow

90%between

now & 2015

Hosting growth

is 3X that of on-premises

HOSTED

THE OPPORTUNITY

1/3 of data will reside on the cloud

by 2020

Desktop Hosting grows

to $5.6b by 2016

Partner Momentumwith Windows Server 2012 & System Center 2012

50+ Industry leading partners are already building services with our newest technologies

Your Customer Offers Powered by MicrosoftTa

rget

Cust

om

ers

End

Cust

om

er

Off

ers

• Websites as a Service • Windows Server Hosted • SQL Database Hosted• Database-as-a-Service

• High Availability• Hosted Desktop and apps

• Business Apps Productivity Suite Apps:• Unified Communication• Content Management and

Collaboration• Exchange

VM Hosting Database HostingWeb Hosting Desktop HostingServ

ice

Prov

ider

Sc

enar

ios

Application Hosting

Corp

ora

te

Ente

rpri

se

enterprise

Small and medium business

Windows Server 2012: What’s NewDesigned for Hosting Service Providers to drive lower infrastructure TCO and deliver new business opportunities

Top Features for Service Providers

Comprehensive Cloud Platform

Network Virtualization

1

Disaster Recovery with Hyper-V Replica

2

VM Scalability & Performance

3 4

Web-Farm Scalability with IIS8

5

Storage Spaces

Live Storage Migration & Shared Nothing Live Migration

6

Granular Resource Metering

7

Hyper-V Extensible Switch

8

Data De-Duplication

9

RDS Improvements for Desktop Hosting

10

Cost Efficiency

Expanded Services

Windows Server 2012 & Hyper-V Reviews

“Microsoft a Leader in x86 Server Virtualization Infrastructure"

“2012 will be VMware’s last year as king of the hill”Al Gillen – IDC

Source: Worldwide Systems Infrastructure Software Top 10 Predictions- Dec. 2011

“Microsoft has grasped the fundamental truth about the transition to cloud.”

Richard Fichera - Forrester Research

“Poised against the current features of

VMware and one-upped.”

Tom Henderson - IT World

“Microsoft claims 300 new features… we wonder

whether the marketing guys left off a zero.”

Brian Chee and Doug Dineley - InfoWorld

Gartner Magic Quadrant, 2011

Comprehensive Cloud Platform

Comprehensive Cloud PlatformBuilt and designed for Hosting Service Providers

Web HostingApplication HostingVM Hosting Database Hosting Desktop Hosting

Computer Storage (File/Block) Network

ServiceDelivery & Automation

ApplicationManagement

InfrastructureManagement

Foundation for Hosting Service Provider Offers

Windows Server 2012

Virtualization Networking Storage Management

Remote Desktop ServicesWeb Applications

Availability

Scalability

Security

Hardware

• Linux runs as a first-class guest on Windows Server Hyper-V

• Develop apps for both Linux and Windows (CoApp)

• Supported on Windows Virtual Machines (CentOS, openSUSE, SUSE, Ubuntu)

Microsoft + Linux

“Microsoft is playing quite nicely with Linux and other open source tools. “

-Robert McMillan, Wired Enterprise

Cost Efficiency

Windows Server 2012 Lowers Infrastructure Costs for Hosting

ScalabilityMore scalability per server• More VMs per server

• 32x increase in virtual disk size per VM

• 2.5X increase to 160 logical processor support

Dynamic Network New functionality and reduced management overhead• Extensible Switch • IP mobility • Security• New QoS features

Improved Web Server More websites per server • NUMA Aware Scalability

• Simplified SSL management

• Designed for scale-out

Multi-TenancyReduced management costs• Tenant isolation

• More easily move VMs across premises

• Resource Metering

Automated Management Management savings through automation• 2000 new Windows PowerShell cmdlets

• Cluster update management

• Integration with System Center

Flexible StorageSAN-like performance on commodity HW• Lower-cost storage via Storage Spaces &

Pools• SMB & Fibre Channel improvements• De-duplication• Improved SAN support

Better Margins with Microsoft vs. VMware

Hosting Revenue and Margins for a Single VM Rented for 365 Days

Per VM You can charge, $1,051 annual revenue

(VM with 2GB RAM @ $0.12/hr)

$1,009 $851

$42

$159

MS Takes

4% of revenue

Microsoft VMware

More margin

VMware Takes

15.1%

of revenue$42

Microsoft

VMware

Potential Service Provider Profit

SPLA Core Infrastructure Suite Cost

Potential Service Provider Profit

VMware Service Provider Program (VSPP) 3.0 Premier Cost Microsoft vs. VMware Annual Licensing

Costs for a single VM rented for 365 days based on a 50 Server Deployment, with 2GB per VM and 2400 VM instances at maximum capacity

Comparison Windows Server + System Center for application, OS & HW management running on either Hyper-V or VMware ESX

Expanded Services

Expanded ServicesFor Hosting Service Providers

Multiple customer offers powered by Microsoft

Single Infrastructure Platform for a Rich Set of Offers

Build a single foundation for all your offers with Windows Server and System Center

Optimize your deployment for physical, virtual, shared, or dedicated offers

Integrate with heterogeneous platforms, operating systems, and applications

Cross sell to grow your business

Foundation for Future Growth

1 2

3 Easy to enable, deploy, and manage

Extensible by design, including open source APIs

Unlimited virtualization and end-to-end management simplifies and lowers licensing costs

Add managed services and premium SLAs on top of your core customer offers

Lead with commodity Website and VM Hosting offers and cross sell to more services or higher margin services

Expanded Business Opportunities

New Hosted Business Opportunities with Windows Server 2012

Application HostingDatabase Hosting

Comprehensive Cloud Platform

Expanded Services

VM Hosting Web Hosting Desktop Hosting

Cost Efficiency

WebMatrix 2 - A FREE, simple and powerful web development tool

Web Application Gallery

Providing developers access to the latest version of the most popular web apps

Web Hosting Gallery

Driving customers to service provider’s businesses from microsoft.com

www.microsoft.com/web/webmatrix/next/

Web with Benefits Campaign

Available to help service providers attract new customers

Benefit for those who use WebMatrix2 to develop websites

Keep WebMatrix2 customers coming back with an easy solution for hosting their sites

Web Hosting

Market trend: The estimated market size of Website hosting and maintenance in 2012 is $48B and a CAGR of 8% over the next three years1.

1Source: AMI-Partners; www.ami-partners.com, 2H2011 Routes to Market Report

Market trend: Off-premises instances will grow 90% between 2012 – 20151.

Virtual Machine Hosting

1Microsoft Internal Analysis, Spring 2012

VM Hosting

Why Microsoft?

Fastest growing hypervisor and management platform

Huge installed base running on Windows Server means potential revenue opportunities

No hidden costs: VMware tax and unlimited virtualization provides higher profit opportunities

Huge customer install base as well as fast growing Software-as-a-Service market drives the demand for hosted Windows servers

Desktop Hosting

Market trend: By 2015, the estimated market size for Desktop Virtualization is $5.6B and an estimated 75% in session-based

computing1.

1451Research 2012

Desktop Hosting

Why Microsoft?

Comprehensive end to-end solutions

Access from any device

Up-selling opportunity based on the large Hosted Exchange installed base

High growth opportunity

High revenue and margin

Built-in customer loyalty (high switching costs)

Database Hosting

Market trend: The total data platform market will reach to $39.9B by 2012. Cloud (Database-as-a-Service) + Hosted Database market will reach $4B in FY151.

Why Microsoft?

• SQL Server 2012 is a comprehensive cloud-ready information platform • 99.9999% uptime and mission critical data protection

• Up to 10-100x improvements in performance

• The most up-to-date software without the need for expensive upgrades or lengthy service pack updates

1Microsoft Internal Analysis, 2012

Database Hosting

Simplified Licensing

Windows Server 2012 Under SPLA

Flexible, Affordable, Easy to Use Server

Solution

Low Density Service Provider Cloud

Highly Virtualized Service Provider Cloud

Windows Server2012

Essentials

Windows Server

2012 Standard

Windows Server2012

Datacenter

Key Changes

PricingWindows Server 2012 Datacenter – same price per processorWindows Server 2012 Standard – price decreases 14% per processor Core Infrastructure Server Suite Standard (WS+SC) – price decreases 7% per processor

Discontinued Product EditionsWindows Server Enterprise, Web and HPC, OEM Windows Server SAL removed for all editions Small Business Server editions

LicensingPer Processor license model for all editionsWindows Server 2012 Essentials: Limited to 25 users

*Note: Pricing is for illustrative purposes only, final price determined by reseller

Windows Server Editions in SPLA+

Today TomorrowWindow Server

Small Business Server

Windows Server 2008 R2 Enterprise

Windows Server 2008 R2 Standard

Windows Server 2012 Essentials

Windows Server 2012 Datacenter

Windows Server 2012 Standard

Windows Web Server 2008 R2

Windows

Server 2008 R2 HPC Edition

Windows Server 2008 R2 Datacenter

Windows Small Business Server 2011 Standard

Windows Small Business Server 2011 Premium Add-On

Windows Small Business Server 2011 Essentials

Window Server

Windows Server Transition Path

Windows Server 2008 R2 Enterprise

Windows Server 2008 R2 Standard

Windows Server 2008 R2 Datacenter

Windows Web Server 2008 R2

Windows Server 2008 R2 HPC Edition

Windows Server 2012 Standard

Windows Server 2012 Datacenter

Windows Server 2012 Datacenter

Windows Server 2012 Standard

Windows Server 2012 Standard

Microsoft Hyper-V Server(not available in SPLA)

Microsoft Hyper-V ServerFREE

Today Tomorrow

Core Infrastructure Suite (CIS) Saves You MoneyOne license for your entire service provider cloud infrastructureqq

$84

Windows Server & System Center

separate purchase

Core Infrastructure Suite

19% Savings with CIS

System Center Server Management Suite Datacenter

Core Infrastructure Server Suite Datacenter

Windows Server Datacenter

$32$104

CIS DatacenterIdeal for highly virtualized offers

CIS StandardIdeal for non-virtualized & dedicated

server offers

*For illustration purposes – prices may vary, contact your SPLA reseller for updated pricing

or

$72

Better Margins than VMware,Especially as You Grow

Microsoft is 1/4 the cost of VMware’s RAM-based pricing

96 GB RAM per Serverfor 50 servers

192 GB RAM per serverfor 50 servers

$99,884Microsoft

$481,200VMware

1/4 the cost

$884,400VMware

$1,248,600

VMware

288 GB RAM per serverfor 50 servers

1/9 the cost

1/12 the cost

$99,884Microsoft

$99,884Microsoft

SPLA Core Infrastructure Suite CostVMware Service Provider Program (VSPP) 3.0 Premier cost

Microsoft vs. VMware Annual Costs for a 50 Server Deployment, 2GB per VM with either 2400, 4800 or 7200 2 GB VM instances at maximum capacityComparison Windows Server + System Center for application, OS & HW management running on either Hyper-V or VMware ESX

Resources and Call to Actions

Action Plan

Take offer to market• Train your team on the

new services offered• Utilize appropriate Partner

Program as applicable• Determine your target

market• Launch offer using planned

digital media, Search Engine Optimization (SEO), and call lists to target your audience

Start your journey • Learn more about

windows Server 2012

• Completed Architecture

• Deploy new service

• Test before taking to Market

Invest in Go-To-Market to Grow Your Business!• Use MPN resources to help

deploy a campaign to your target market

• Measure effectiveness and adjust accordingly

Resources

PLAN

Hosting Competency

Windows Server® 2012 with Hyper-V™ & System Center 2012

System Center 2012 Community Evaluation Program

Hosting Landing Page

Hosting Days Events

ENABLE

Hosting Competency

Virtualization Competency

Identity and Sec

urity Competency

Systems Management Competency

Server Platform Competency

Microsoft Action Pack Solution Provider

CREATE DEMAND

Customer Cloud Assessment Tool

Private Cloud Campaign Materials

Pinpoint

SELL

License Mobility through Software Assurance

Microsoft Services Provider License Agreement (SPLA)

DEPLOY

Service Provider Cloud Toolkit

Deployment Planning Services

Microsoft Private Cloud Fast Track

Hyper-V™ Deployment Guides

Security Compliance Manager

1 2 3 4 5

Why Microsoft needs Service Providers

Serv

ice Build

Sell

Advi

seD

ifferen

tiate

Partners

• Continue to build and deliver cloud services to provide agile and cost effective solutions for your customers

You…

• Provide support and self-service tools for customers

You…

• Create recurring revenue streams by providing value-added solutions, and up-selling/cross-selling with attached services

You…

• Provide differentiated services based on SLAs, location, customization, and market verticals

You…

• Are the trusted advisor for customers to navigate the cloud landscape

You…

Thank You

Appendix

Appendix

Internal HW RAID or Windows virtualized storage (Storage Spaces)

Clustered PCI RAID or Windows virtualized storage (Storage Spaces)

Clustered PCI RAID or Windows virtualized storage (Storage Spaces)

Fibre Channel or IP SAN

Single node 2 nodes 3 to 8 nodes with CSV v2 scale-out*HW RAID node support partner-dependent

3 to 32 nodes with CSV v2 scale-out

Shared JBOD SAS

Shared JBOD SAS (discrete or CiB) Shared JBOD SAS (discrete or CiB) External Storage Array

Integrated SAS switch in JBOD SAS switch and fabric Fibre Channel or IP SAN Fabric

Virtualization: server running Hyper-V Info worker: File Server shares

Virtualization: server running Hyper-V Info worker: File Server shares

Datacenter NAS: FS for Hyper-V, SQL, IIS Applications: SQL Server

Virtualization: server running Hyper-V

Datacenter NAS: FS for Hyper-V, SQL, IIS Applications: SQL Server

Virtualization: server running Hyper-V

Datacenter NAS: FS for Hyper-V, SQL, IIS Applications: SQL Server

Flexible Storage Solutions with Storage Spaces

Clustered discretesystems

2 node cluster + storage in a Box

(CiB)

or

Shared SAS JBOD

External Storage ArraySingle

discretesystem

Small Business and Branch

Midmarket and Departmental

Enterprise and Hosted Cloud

4 node cluster + storage in a

Box

or

Uses resource pools

Is compatible with all Hyper-V operations

Is unaffected by virtual machine movement

Uses Network Metering Port ACLs

Windows Server 2012: Resource Metering for SPs

A two-tenant environment built with Hyper-V in Windows Server 2012

Features Average CPU use

Average memory use

Minimum memory use

Maximum memory use

Maximum disk allocation

Incoming network traffic

Outgoing network traffic

Metrics

Extending the Hyper-V Extensible Switch for New Capabilities

Two platforms for extensions NDIS filter drivers WFP callout drivers

You can extend or replace Ingress filtering Destination lookup and forwarding Egress filtering

Other features Extension monitoring Extension uniqueness Extensions that learn virtual machine

life cycle Extensions that can veto state changes Multiple extensions on same switch

Architecture of the Hyper-V Extensible Switch

Extension Purpose Potential ExamplesExtensible component

Network Packet Inspection

Inspecting network packets, but not altering them

sFlow and network monitoring

NDIS filter driver

Network Packet FilterInjecting, modifying, and dropping network packets

Security NDIS filter driver

Network ForwardingThird-party forwarding that bypasses default forwarding

OpenFlow, Virtual Ethernet Port Aggregator (VEPA), and proprietary network fabrics

NDIS filter driver

Firewall/Intrusion Detection

Filtering and modifying TCP/IP packets, monitoring or authorizing connections, filtering IPsec-protected traffic, and filtering RPCs

Virtual firewall and connection monitoring

WFP callout driver

Hyper-V Extensible Switch Extension Types

Multitenant Security and Isolation

Hyper-V Extensible Switch New feature

Handles network traffic between

Virtual machines

The external network

The host operating system

Layer-2 virtual interface

Programmatically managed

Extensible

Multi-tenant Security and Isolation

Private Virtual LAN (PVLAN)

Isolate virtual machines from other virtual machines in your datacenter.

Create community groups of virtual machines that can exchange data packets.

Example PVLAN:‒ Primary VLAN ID is 2‒ Secondary VLAN IDs are 4 and 5

Scale beyond VLANs with Hyper-V Network Virtualization

How network virtualization works Two IP addresses for each virtual

machine General Routing Encapsulation

(GRE) IP address rewrite Policy management server

Problems solved Removes VLAN constraints Eliminates hierarchical IP address

assignment for virtual machines

Scalability Improvements

Enhanced failover clustering ensures high availability at scale

System ResourceMaximum number

Improvement factorWindows 2008 R2 Windows Server 2012

Host

Logical processors on hardware 64 160 2.5×

Physical memory 1 TB 2 TB 2×

Virtual processors per host 512 1,024 2×

Virtual machine

Virtual processors per VM 4 32 8×

Memory per virtual machine 64 GB 1 TB 16×

Maximum size per virtual disk 2 TB 64 TB 32x

Active virtual machines 384 1,024 2.7×

ClusterNodes per clusters 16 64 4×

Virtual machines per clusters 1,000 4,000 4×

Hypervisor improvements to address high density and scale-up scenarios

Storage Improvements

Shared Nothing Live Migration of VMs without requirement of shared storage

Continuously available file server: Benefits of a SAN out-of-the-box

De-duplication & thin-provisioning out-of-the-box

Support for VMware ESX virtual machine storage via NFS data stores

Storage Spaces and Storage Pools: Pooled storage that supports commodity HW and is easily managed and expanded.

Rapid VM Provisioning & Migration with ODX and intelligent storage arrays

Networking Improvements

Extensible SwitchImproved virtual machine traffic isolation, prioritization, security, usage metering, and trouble shooting. Build your own extensions for the offers and SLAs you deliver to customers!

Network VirtualizationIP Mobility: Move workloads without changing network configurations or reconfiguring physical networks

Quality of Service Guarantee minimum services bandwidth while maximizing network throughput

NIC Teaming out-of-the-boxImproved fault tolerance, traffic management, and works for all vendors

Network Isolation for Multi-tenancy

Resource Metering to prevent noisy neighbors & enable premium services

Average CPU usage, measured in megahertz over a period of time Minimum & Maximum memory usage Maximum amount of disk space allocated to a virtual machine Total incoming / outgoing network traffic, measured in megabytes, for a virtual network

adapter

Storage Spaces

ACLs provide isolation for multi-tenancy

Extensible Switch provides isolation for multi-tenancy

Private virtual local area network (PVLAN) Virtual port access control lists (ACLs) Virtual LAN (VLAN) trunk mode support Protection against Address Resolution Protocol (ARP) poisoning, spoofing, and DHCP snooping

IIS Sandboxing & CPU metering

Website isolation for improved security SLA improvements via CPU metering

Automated Management

PowerShell 3.0: Automation Engine Simplifies administration of multiple servers, even in multiple

sites Offers path toward full automation Makes cmdlets easier to learn Makes new scripts easier to write

Cluster Aware Update Management Eliminates downtime associated with cluster updating Simplifies cluster updates through configurable automation Transparent to users and hosted applications Extensible to install even non-Windows software updates through custom plug-ins

Integration with System Center 2012 Comprehensive deployment and updating for virtualized and physical server

deployments Monitoring of hardware, operating systems and applications! End-to-end automation