© 2012 Microsoft Corporation. All rights reserved. Microsoft, Active Directory, Bing, Hotmail, Hyper-V, Lync, Microsoft Dynamics, the Microsoft Dynamics logo, the Microsoft Office logo, the Server logo, SharePoint, SQL Server, Visual Studio, Windows, Windows Azure, Windows Intune, Windows Live, the Windows logo, Windows Server, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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Cloud computing is the most important paradigm shift in IT since the arrival of the Internet. Businesses around the world are already beginning to make the transition to this new model of computing. Based on Microsoft’s internal research and through working with industry analysts, Microsoft believes there are three key concepts driving the cloud computing trend: agility, focus and economics.

Agility:

Cloud computing speeds up your ability to capitalize on opportunities and respond to changes in business demand. You can deploy applications faster and more efficiently, and you can deliver solutions to your end users so they can work from nearly anywhere, at any time, across devices—in ways that are both highly secure and manageable. Also, with cloud computing, all of the IT infrastructure you need to operate quickly and efficiently is available at the “flip of a switch.” Therefore, the next time the marketing department launches a campaign and doesn't tell anybody, your website is much less likely to go down. The environment can quickly scale up and down to meet spikes in demand—on terms you control.

Focus:

Cloud computing increases your ability to improve your business through better IT. It allows you to focus more on innovation and less on infrastructure. Today, the typical IT department spends most of its time and money on maintenance and operations; cloud computing cuts those costs down dramatically. As infrastructure is abstracted and resources are pooled, IT runs more like a utility than a collection of complicated (and often fragile) software and hardware systems. When you can pay more attention to ideas than to IT complexity, you add value to the business.

Economics:

Cloud computing can lower the cost of delivering IT and increase the utilization and efficiency of your data center and your IT spend. Your delivery costs go down because now you can offer self-service of applications and resources, and you can meter the usage of those resources in new and very precise ways. Utilization goes up because your infrastructure resources (storage, compute, and network) are now pooled and abstracted. For example, when a self-service application is finished, the server and storage resources it used will go right back into the pool. The environment is highly automated so your systems aren’t just sitting around—they’re always at work.

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While we at Microsoft are excited about the opportunities the cloud transformation will bring to companies around the world, we recognize there are some real and perceived barriers to cloud adoption. We've seen research from almost every analyst firm that shows similar results, with the top three cloud adoption obstacles being in the areas of security, compliance, and compatibility.

Security and privacy are consistently the highest concerns from organizations worldwide. Before companies or governments can trust their most critical data and relationships to this new model, they need to be convinced that it meets or exceeds the standards they’ve demanded from their existing IT environments.

We also hear more and more about regulatory concerns. As people think about adopting cloud technologies, especially in certain geographies and in certain industries, regulatory and compliance has really risen to become a major concern.

And then, of course, there's compatibility, which centers on concerns around particular features or gaps in the cloud platform as an obstacle. Compatibility is about integrating new cloud technologies with heterogeneous data centers and legacy applications that customers have so much invested in already.

At Microsoft, we deeply understand these customer concerns. Our product teams have been working for years developing cloud computing technologies for real-world use, and our partners around the world are on the cutting edge of implementing cloud solutions today, in ways that help customers navigate these obstacles.

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The Microsoft vision is to have a continuous cloud service for every person and every business. At Microsoft, we want to optimize every business to employ cloud technologies in their own way, at their own pace. To do this, we’re taking years of experience we have at running applications at Internet scale, such as the Microsoft Bing® search engine and Microsoft Hotmail® web-based email service, and combining that with our expertise in on-premises software. This gives us three cloud environments that run several distinct categories of cloud environments:

Private cloud—where businesses control their environment by using cloud-enabled on-premises products. Public cloud—where we manage the platform for you. A mix of the two—or what we call the hybrid cloud.

We’re anchoring the private cloud environment with the cloud-optimized Windows Server® operating system with Hyper-V® technology, and the Microsoft System Center management solution , which manages everything from infrastructure to applications to clouds—private and public—making it possible for you to manage the world of the hybrid cloud. By the same concept, Microsoft public cloud offerings are anchored by the Windows Azure™ technology platform, which is a comprehensive IT platform across compute, storage, network capabilities, and higher-level services like relational databases .

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Microsoft believes all companies are going to have multiple cloud environments, including private and public. In this hybrid world, you absolutely need a distributed computing fabric that brings things together on behalf of your IT professionals and your developers writing applications. These commonalities of identity, virtualization, management, and application development are what make the Microsoft platform unique.

Common identity. The majority of Microsoft’s enterprise customers use Microsoft Active Directory® directory services to manage their identity infrastructure. Through federation, you can also extend Active Directory to offer consistent and highly secure single sign-on experiences for applications spanning across private and public clouds. For example, Coca Cola Enterprises set up an Office 365 solution with single sign on for their employees and business partners using a combination of on-premises and public cloud based components. (http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=4000004584)

Common virtualization. Through capabilities such as the Windows Azure VM role, the Microsoft platform helps you deliver application portability across private and public clouds.

Common management. Through System Center 2012, Microsoft offers full visibility and control for IT professionals across private and public cloud environments. At the same time, Microsoft continues to empower your application owners with self-service to make sure they can deliver agile app experiences to their businesses.

Common development. The developer experience from Microsoft on the Windows® platform is unparalleled. The Microsoft .NET Framework allows developers to use the same set of skills to rapidly build great applications for the client, phone, browser, server, and the cloud. Manage the entire application lifecycle with Microsoft Visual Studio® development system. Use the most popular languages for development so you don’t have to retrain your developer staff on a new paradigm.

This entire picture is one of the biggest advantages Microsoft offers its customers. To summarize, Microsoft private and public cloud technologies easily work with each other, creating synergies for a hybrid cloud environment. From first-party applications, to higher-level services for public cloud, to providing better TCO on private cloud than our competitor such as VMware, Microsoft is committed to delivering the best-in-class hybrid cloud solutions to its customers.

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Whether it's public or private, Microsoft cloud services across both fall into a few categories:

Productivity—with Microsoft Lync® Server, Microsoft Exchange Server, and Microsoft SharePoint® Server on the private cloud, and Microsoft Office 365.

Database—with Microsoft SQL Server® database software private cloud enabled, and Microsoft SQL Azure™ in the public cloud space.

Business applications—with Microsoft Dynamics® CRM enabled on the private cloud, and Microsoft Dynamics CRM Online available through our public cloud.

Infrastructure—Windows Intune™ software and services provides desktop management and security running on the cloud, and the Windows Azure platform.

It's not just the fact that we have this deep and broad set of services and platform capabilities across public and private clouds, it's the commonalities between the two that provides the uniqueness of Microsoft’s business cloud strategy.

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To answer the common question of what distinguishes cloud computing from a highly virtualized’environment, there are a few key differentiators—powerful attributes that make cloud computing unique:

Pooled resources. In a private cloud, your core resources—compute, storage, and network—are transformed into a pool. This enables dynamic provisioning of applications and services.

Self-service. Once resources are pooled, you can deliver applications and resources as services. Your customers can request, configure, and manage IT services as they like through an interactive portal that allows for automated provisioning.

Elastic. Because resources are pooled, they can quickly be expanded or contracted through automation or workflow. This means your environment and resources can scale up or down almost instantly to meet business requirements.

Usage-based. With resources as services, usage can be metered so that you and your customers pay for only for the resources that actually get consumed.

The private cloud adds additional control and customization; private cloud is cloud computing, dedicated to you.

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Different vendors have different ideas of what the private cloud is, but Microsoft offers private cloud solutions that deliver real value today and position a business to take advantage of greater public cloud benefits in the future.

The Microsoft approach to the private cloud is built on four key “pillars”:

All About the App Cross-Platform from the Metal Up Foundation for the Future Cloud on Your Terms

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Requirements

Applications are the lifeblood of your business. The ability to deploy new applications faster and keep them up and running more reliably is the central mission of IT as a competitive differentiator. To gain a real edge, you need to go beyond just managing infrastructure. You need to:

Manage applications, not just infrastructure. Deploy new applications faster. Keep applications up and running more reliably.

With Microsoft

Microsoft offerings for the private cloud give you deep application insight and management of services as well as virtual machines.

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With Microsoft offerings for the private cloud, you can:

Optimize the application life cycle with service templates and self-service. Improve availability and performance with deep application monitoring and diagnosis. Remediate application issues faster and improve SLAs.

Microsoft private cloud offerings let you deliver applications as a service. You can deploy both new and legacy applications on a self-service basis, and manage them across private cloud and public cloud environments. You can virtualize server applications to simplify deployment and upgrading.

Microsoft provides a new way to see what’s happening with the performance of your applications, so you can remediate issues faster, before they become larger problems. The result is better service levels, better customer satisfaction, and a new level of agility across the board.

Case Study: The National Bank of Kuwait

After decades of using mainframe technology, the National Bank of Kuwait wanted a scalable infrastructure that the IT department could rely on to deliver services to employees and customers. By implementing Windows Server 2008 Hyper-V in addition to the Microsoft System Center family of products, they developed a private cloud infrastructure through which they virtualized 75 percent of a portion of their infrastructure, gaining improved agility and a greater ability to respond to business needs. The bank also achieved a 40 percent cost savings.

See http://www.microsoft.com/casestudies/Windows-Server-2008-R2-Enterprise/National-Bank-of-Kuwait/National-Bank-of-Kuwait-Virtualizes-75-Percent-of-Servers-for-40-Percent-Cost-Savings/4000010926)

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IT pros have several requirements for their data centers. As no data center is an island, you likely run and manage an IT environment today that is deeply heterogeneous, with a wide range of operating systems, hypervisors, and development tools in the mix. You want to gain the advantages of private cloud computing, but not if it means walking away from your existing IT investments or adding new layers of complexity.

You need to:

Run and manage a heterogeneous environment. Build a private cloud on multiple hypervisors, management systems, and development tools. Gain private cloud capabilities without sacrificing existing IT investments.

Private cloud solutions from Microsoft give you comprehensive management of heterogeneous IT environments.

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With Microsoft offerings for the private cloud, you can:

Manage multiple hypervisors (from Microsoft, VMware, and Citrix). Run and monitor multiple operating systems. Drive process automation and configuration across platforms and toolsets. Develop applications using multiple application toolsets.

Microsoft private cloud offerings let you keep what you’ve got and make the move to a new kind of agility. This is achieved by being architected from the bare metal up to enable process automation and configuration across platforms and environments. You can manage multiple hypervisors, including VMware, Citrix, and Microsoft offerings, thus enabling you to run and monitor all major operating systems. You can also develop new applications using multiple toolsets.

As the Microsoft private cloud offerings provide comprehensive management of heterogeneous IT environments, you can put your business’s needs ahead of the needs of any particular technology or vendor.

Case Study Summary: The City of Milwaukee

The City of Milwaukee wanted a better, less expensive way to manage a growing IT infrastructure. They tried virtualizing servers on VMware, but they found VMware tough to manage and expensive to license. They adopted a Microsoft virtualization solution that includes the Windows Server 2008 R2 operating system with Service Pack 1 and Hyper-V virtualization technology, Microsoft System Center management products, and the Microsoft Virtual Desktop Infrastructure Standard Suite. Now, the city’s IT staff is 50 percent more productive, enabling it to handle a growing infrastructure without additional staff. Licensing costs are less, and the servers operate better.

http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?CaseStudyID=4000010533

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Cloud computing offers the promise of unlocking new innovation and transforming the role of IT in driving business success. A private cloud strategy is no longer just about virtualization and server consolidation. It delivers fundamentally new capabilities that represent a fundamental shift in computing. The decisions you make today will have long-term implications for the future of your business.

You need to:

Provide a secure and manageable private cloud infrastructure. Deliver greater infrastructure scalability to meet new performance demands. Deliver cloud capabilities with compelling economics.

With Microsoft offerings for the private cloud, you can go beyond virtualization to a true cloud platform.

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With Microsoft offerings for the private cloud, you can:

Deliver best in class performance for your key Microsoft workloads. Take advantage of the economics of the private cloud without the limitations of per-VM licensing. Fully integrate management systems, from hardware resources to application services.

For more than 15 years, Microsoft has operated some of the world’s biggest and most advanced data centers, and we’ve driven the evolution of major Internet services such as Windows Live®, Hotmail, and Bing. Our experience is unmatched in the industry, and we’ve taken all that we’ve learned and put it into the core of our products.

Microsoft workloads (including SharePoint, Exchange, and SQL Server) work best on the Microsoft private cloud. But the story is much bigger than that. We’ve architected our platform and our management approach to be comprehensive and deeply integrated, spanning private and public cloud scenarios. Our goal is to take our customers beyond virtualization—and unnecessary per-VM licensing—and proceed with confidence in building a highly secure and manageable private cloud that delivers great performance and compelling economics.

Case Study Summary: Voith IT Solutions

Voith IT Solutions provides global IT services for its parent company, Voith, from headquarters in Heidenheim, Germany, and locations throughout Asia. In November 2009, they implemented Windows Server 2008 R2 with Hyper-V and by March 2011 had virtualized 75 percent of their server infrastructure—185 hosts and 1,196 virtual machines. Their virtualized infrastructure costs 40 percent less than an all-physical infrastructure, and they expect savings to grow as they continue to virtualize more workloads. They also saw great performance and availability for Microsoft workloads, including SQL Server.

See http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?casestudyid=4000003608

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The move to cloud computing involves more than just building a private cloud. The undeniable benefits of public cloud computing—on-demand scalability, flexibility, and economics—also promise significant competitive advantages. The challenge is to use your existing investments, infrastructure, and skill sets to build the right mix of private and public cloud solutions for your business—one that will work for you today and in the future.

You need to:

Operate across private and public clouds with a single management view. Enable on-demand scalability that can utilize public cloud resources. Take advantage of existing investments, infrastructure, and IT skill sets.

Microsoft offerings for the private cloud let you distribute IT across public and private cloud computing models.

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With Microsoft offerings for the private cloud, you can:

Use common management, identity, virtualization, and development tools that span private and public clouds.

Construct and manage clouds across multiple data centers, multiple infrastructures, and service providers. Provide delegated authority and tools to enable self-service across environments. Retain control across your private and public clouds for compliance and security.

With Microsoft, you have the freedom to choose. Because Microsoft solutions share a common set of management, identity, virtualization, and development technologies, you can distribute IT across physical, virtual, and cloud computing models. Our solutions are built to give you the power to construct and manage clouds across multiple data centers, infrastructures, and service providers—on terms that you control. You can keep a handle on compliance, security, and costs, and let your business needs drive your IT strategy, instead of having IT limit your options.

Case Study Summary: Fujitsu

IT provider Fujitsu Spain wanted to deliver Exchange Server 2010 as a private cloud service to customers. They planned to build a virtualized IT environment on which to provide the offering, and considered proposals from Microsoft and VMware. They chose the Microsoft Dynamic Data Center Toolkit to support the cloud service. Now, customers are quickly adopting the solution, giving Fujitsu Spain a competitive edge in the market. One key benefit is that customers can now choose a pure cloud-based system or a hybrid solution that includes some on-premises hardware to meet their specific requirements.

See http://www.microsoft.com/casestudies/Case_Study_Detail.aspx?CaseStudyID=4000010871

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There’s no time like today to start your cloud journey.

You can learn more, download and install the products that comprise the Microsoft private cloud solutions.

Start investigating options that work for your business.

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