Differentiated Value Propositions - DVP - One Microsoft - FY15 Q3

Differentiated Value Propositions - DVPOne MicrosoftJanuary 2015

1FY15 DVPsCloudOSOffice 365SkypeLyncIECRM OLTranslatorGoogleAWSOSSSFDCVMWareOracleSAP HanaTableauGoogle AppsChromeSalesforceGtranslateMaciPadAndroidChromebookiPhoneAndroidSQL ServerWindows DeviceWindows PhoneAzureHangoutsWhy Microsoft Security and ComplianceHybrid Cloud StorageInfrastructure as a ServiceWorkload VirtualizationWhy Microsoft CloudWhy Windows DevicesCloud PlatformBusiness InsightsProductivity & Enterprise SocialDevices & MobiltyWhy MicrosoftMission CriticalBig DataEffective MeetingsSales ProductivityMobile ProductivityConnected WorkforceSocial SalesSocial CollaborationEnterprise Mobility ManagementBusiness Ready DevicesOne MicrosoftDVPsScenarioDVPsProductDVPsDepartmental BIPower BI2How to use the One Microsoft DVPsHelp your audience to remember the DVPs so they can use them internallyJust use the DVP slide as a way to summarizeUse just the DVPs that are relevant for you customer. More is LessOrder them from the most relevant to the less, but still very relevantUse the Scenario DVPs and the Product DVPs when neededThese DVPs are specifically designed for use with executives Never start with the DVPs. Start with the business value//aka.ms/reimaginingExplain the DVPs in the context of your customerBe assertive with the DVPs, not negative with our competitorUse the Why not.. DVPs if its really necessaryMicrosoft Confidential#Why Microsoft

Leader in 16 of Gartners Magic QuadrantsLeading the Hybrid Cloud in a hybrid worldA complete platform that our partners extendStrongest geo presence and involvementMost complete and integrated portfolio

One single Enterprise Level Support for all your workloadsOpen and multi-platformEnterpriseSecurity and privacy built in our DNA

Most complete and integrated solutions and experiences: No other company has such a complete portfolio, from IaaS to PaaS and SaaS, from productivity and social solutions to ERP, from smartphones to PPIs. Microsoft offers the most connected, comprehensive set of cloud solutions (Windows Azure, Office 365, Microsoft Dynamics), with an unmatched breadth and depth of capabilities from platform to productivity apps to business solutions. Our integrated portfolio of cloud services works across devices and is supported by one of worlds largest developer and partner ecosystem. From a customer perspective this means a lower cost and complexity associated with the product/services integration, IT provider management and support.

Leader in 16 of Gartners Magic Quadrants: Microsoft is present in 29 Gartners Magic Quadrants, 16 of them as a leader. Google and Salesforce are only present in 8 MQs and Amazon Web Services in 3. ( October 2014 )

One single Enterprise Level Support for all your workloads: Instead of contacting different customer support services for each of your workloads and their corresponding SLAs, you can contact a single vendor with more than 20 years of enterprise-relationship experience and get end-to-end support from the infrastructure to your operating system and applications.

Open and multi-platform: Linux VMs, OSS Software on Azure, Office for iPad and Android, Office 365 APIs for Android and iOS, OneDrive, Skype, Microsoft Band connecting to iOS, Android and Windows Phone. Were doing more for multiplatform support in a mobile-first, cloud-first world than Google or Apple

Leading the Hybrid Cloud in a hybrid world: Weve been in the IT industry for a while and we know that things are not black or white. Our customers will move or develop new solutions on the public cloud but will keep part of their systems in a private cloud or on-premises. Our Cloud Platform architecture embraces the cloud on your own terms leading the Hybrid Cloud in a hybrid world. From a customer perspective this means a seamless integration with their current infrastructure and the ability to decide what applications and data will be on-premises and which ones will be in the cloud.

Security and privacy built in our DNA: Microsoft offers an unparalleled heritage of enterprise IT experience with a commitment to security and privacy. Our strict culture around security, privacy, and governance directly impacts the way we design and deliver our services. And our experience working with many of the largest companies worldwide gives us a unique insight into the most reliable methods for protecting customer and company data. Microsoft has an inherent respect for privacy that drives us to help people control the collection, use, and distribution of their personal information. Our privacy principles guide how we use and manage customer and partner data, and give our employees a framework to help ensure privacy compliance across the company. The user is our customer, not our product.

Strongest geo presence and involvement: Microsoft operates in 119 countries worldwide. In each of these countries Microsoft has an enduring commitment to working to fulfill our public responsibilities and to serving the needs of people in those communities. As our company has grown, this commitment has extended far beyond our own products and services and has been amplified many times over through our network of partners, including governments, nonprofits and other organizations. Every Microsoft subsidiary has a National Plan initiative to align Microsoft activities with national priorities (education, innovation, healthcare, smart cities,..). From a customer perspective this means having a local Microsoft presence, local language support, local or closer data centers and bigger partner ecosystem resulting in higher quality services. For every dollar that Microsoft gets our partner ecosystem get aprox $10 which is one of the highest ratios in the industry and contributes to the local economy.

A complete platform that our partners extend: Microsoft Partner Network includes over 430,000 organizations worldwide. By working with this broad partner ecosystem we can offer better solutions and better services to our customers.

4Why MicrosoftSMB

Open and multi-platformOne single Enterprise Level Support for all your workloadsA complete platform that our partners extendMost complete and integrated portfolioSecurity and privacy built in our DNA

Most complete and integrated solutions and experiences: No other company has such a complete portfolio, from IaaS to PaaS and SaaS, from productivity and social solutions to ERP, from smartphones to PPIs. Microsoft offers the most connected, comprehensive set of cloud solutions (Windows Azure, Office 365, Microsoft Dynamics), with an unmatched breadth and depth of capabilities from platform to productivity apps to business solutions. Our integrated portfolio of cloud services works across devices and is supported by one of worlds largest developer and partner ecosystem. From a customer perspective this means a lower cost and complexity associated with the product/services integration, IT provider management and support.

Security and privacy built in our DNA: Microsoft offers an unparalleled heritage of enterprise IT experience with a commitment to security and privacy. Our strict culture around security, privacy, and governance directly impacts the way we design and deliver our services. And our experience working with many of the largest companies worldwide gives us a unique insight into the most reliable methods for protecting customer and company data. Microsoft has an inherent respect for privacy that drives us to help people control the collection, use, and distribution of their personal information. Our privacy principles guide how we use and manage customer and partner data, and give our employees a framework to help ensure privacy compliance across the company. The user is our customer, not our product.

A complete platform that our partners extend: Microsoft is close to your business through the biggest Partner Network in the world with over 430,000 organizations worldwide. By working with this broad partner ecosystem we can offer better solutions and better services to our customers.

One single Enterprise Level Support for all your workloads: Instead of contacting different customer support services for each of your workloads and their corresponding SLAs, you can contact a single vendor with more than 20 years of enterprise-relationship experience and get end-to-end support from the infrastructure to your operating system and applications.

Open and multi-platform: Linux VMs, OSS Software on Azure, Office for iPad and Android, Office 365 APIs for Android and iOS, OneDrive, Skype, Microsoft Band connecting to iOS, Android and Windows Phone. Were doing more for multiplatform support in a mobile-first, cloud-first world than Google or Apple.

5Why Microsoft CloudNative SSO among services and on-premisesComplete set of integrated Cloud offeringsLeader in the 4 Gartners Cloud Magic Quadrants Broadest partner ecosystemA True Hybrid Platform

Enterprise Level Support and SLAsHyper ScaleIndustry leading with Security, Privacy and Compliance

(e.g. EU Model Clauses, HIPAA, RMS)

EnterpriseMicrosoft is the only Cloud Company to have the 3 following combined differentitors

Enterprise Level Support and SLAs: Instead of contacting different customer support services for each of your cloud workloads with their different SLAs, you can contact a single vendor with more than 20 years of enterprise-relationship experience and get end-to-end support from the infrastructure to your operating system to your applications.

Hyper Scale: Enterprises need global reach, and huge scale. Some vendors may promote new services and global expansion, but most have no direct experience running cloud services at a global scale or can offer only half the worldwide capacity of Microsoft services. Only Microsoft operates global-scale cloud services AND provides on-premises tools designed for the largest scale mission critical requirements. Microsoft delivers Microsoft Azure, Office 365, Outlook.com, Skype, Bing, and Xbox Live some of the worlds largest cloud servicesto more than 1 billion customers and 20 million businesses in 76 markets. Microsoft cloud services support 300,000 websites, 1 million databases, 300 million users, and 13 billion authentications every week. Microsoft has 19 Azure Regions (This is x2 the number of AWS regions and x6 Google regions). You can launch virtually unlimited compute and storage resources in the cloud or virtualize on-premises failover clusters with up to 8,000 virtual machines. In the cloud or on-premises, Microsoft delivers the hyper-scale that you can use to instantly scale up and scale down solutions with confidence, anywhere in the world.

A True Hybrid Platform: Microsoft provides a truly hybrid cloud platform with a common set of technologies and capabilities across on-premises, Cloud, and Service Provider clouds with a consistent experience across each. E.g.: Unified search for Sharepoint and Sharepoint online, AD, Cloud Backup, Azure Media Services & Sharepoint on-premises. Many of our competitors can offer only a rigid cloud-or-nothing approach and require third-party integration solutions.

Complete set of integrated Cloud offerings: Microsoft has a complete set of integrated cloud offerings, from infrastructure as a service (IaaS), to Platfom as a Service (PaaS) and all its Software as a Service (SaaS) offerings. As an example, a PaaS development can easily integrate with a VM on Azure IaaS and easily integrate with app services like Sharepoint and CRM Online.

Leader in the 4 Gartners Cloud Magic Quadrants : Microsoft is considered by Gartner (Oct 2014) leader in the 4 Cloud Magic Quadrants : Cloud IaaS, Enterprise Application as a Service, Public Cloud Storage and x86 Server Virtualization. AWS in leader in just 2 of them, Salesforce.com in 1, Google in none of them.

Industry leading with Security, Privacy and Compliance: All our services are independently verified to meet legal and compliance requirements, are financially backed and offer transparent information on their availability. Microsoft is unique among major cloud service providers with over 10 years of privacy experience and having a cloud-specific privacy policy that provides strong commitments to customer data safeguarding and privacy protection.

Best and most innovative enterprise cloud productivity solution: No other cloud provider offers such a complete suite of productivity services. Office 365 is recognized as the leading cloud productivity platform. Our customers can access the productivity platform through the browser or through the Office application, used by 1B users worldwide.

Integrated but separated enterprise and consumer cloud offerings: Not all competitors in this space offer consumer solutions. Others have only one consumer platform that they extend to the enterprise, mixing SLAs and involving the greater risk of sharing private information in a public environment.

Broadest partner ecosystem: Microsoft Partner Network includes over 430,000 organizations worldwide. By working with this broad partner ecosystem we can offer better solutions and better services to our customers.

Native SSO among services and on-premises: Being able to offer Single Sign On is key among multiple cloud services and on-premises apps is key for employee productivity and IT management. Microsoft natively offers SSO among its cloud services, offers REST API for custom apps and federation and directory sync services with AD and other directories. From a customer point of view this means that its easy to have a single sign on for all Microsoft applications in the cloud and on-premises.

6Why Microsoft CloudBroadest partner ecosystemBest and most innovative enterprise cloud productivity solutionIntegrated but separated enterprise and consumer cloud offeringsComplete set of integrated Cloud offerings

Industry leading with Security, Privacy and Compliance

SMBComplete set of integrated Cloud offerings: Microsoft has a complete set of integrated cloud offerings, from infrastructure as a service (IaaS), to Platfom as a Service (PaaS) and all its Software as a Service (SaaS) offerings. As an example, a PaaS development can easily integrate with a VM on Azure IaaS and easily integrate with app services like Sharepoint and CRM Online.

Best and most innovative enterprise cloud productivity solution: No other cloud provider offers such a complete suite of productivity services. Office 365 is recognized as the leading cloud productivity platform. Our customers can access the productivity platform through the browser or through the Office application, used by 1B users worldwide.

Integrated but separated enterprise and consumer cloud offerings: Not all competitors in this space offer consumer solutions. Others have only one consumer platform that they extend to the enterprise, mixing SLAs and involving the greater risk of sharing private information in a public environment.

Industry leading with Security, Privacy and Compliance: All our services are independently verified to meet legal and compliance requirements, are financially backed and offer transparent information on their availability. Microsoft is unique among major cloud service providers with over 10 years of privacy experience and having a cloud-specific privacy policy that provides strong commitments to customer data safeguarding and privacy protection.

Broadest partner ecosystem: Microsoft Partner Network includes over 430,000 organizations worldwide. By working with this broad partner ecosystem we can offer better solutions and better services to our customers.

7Why Windows DevicesVery soon, One platform and one store for any deviceDesktop ApplicationsBest for Enterprise MobilityLong-term support cyclesConsistent Experience across devicesThe broadest range of device optionsOut-of-the-box Security & malware protection

Widest range of peripherals

EnterpriseThe broadest range of device options : Only Windows offers the widest selection of device from the broadest range of vendor to fit their needs and their budget. This means that customer can get the right device, serviceability, warranty and price.

Consistent experience across devices: Enterprise mobile is about enabling a fluid, seamless mobile experience for users. Going mobile is no longer about carrying a single mobile device. Going mobile now means the ability for any user to pick up any device in the context of what they are doing, and have instant access to all of their stuffsettings, data, and applications that follow the user and flow seamlessly from device to device Only with Windows do users have a consistent user interface, apps, and services across smartphone, tablet, laptop, all-in-one and living room televisions through Xbox. This consistency leads to a higher productivity and lower time and cost spend on user training.

Very soon, One Platform and One Store for any device: Today Windows 8.1, Windows Phone 8.1 and Xbox One share the same runtime and have 90% API convergence. With Windows 10, every windows OS (Desktop, Tablet, Phone, Xbox and IoT devices) will have the same foundation, the same kernel and the same drivers as well as a unique store.

Desktop Applications: Windows has150K+ modern apps and 700K+ desktop apps ( e.g. LOB apps ). Windows gives you forward and backward compatibility.

Widest range of peripherals: Windows works with the widest range of peripherals because it supports the widest range of drivers.

Seamless Integration (i.e. Active Directory and Group Policies): Windows 8.1 devices offer a seamless integration with the customers current infrastructure and can be managed easily and securely, offering secure access to customer information and tools. e.g. Windows 8.1 devices use Active Directory, Group Policy, and Windows Server to securely access email, data, printers, and apps.

Out-of-the-box Security and malware protection: Windows 8.1 includes built-in anti-virus, anti-malware, anti-phishing protection at no additional cost. IE 11 includes the industrys best protection against socially engineered malware the leading source of security threats today. Family Safety helps parents keep younger tablet users secure from todays threats. Windows 8.1 Pro includes hardware-level encryption with BitLocker, using industry-standard TPM.

Long-term support cycles: Only with Windows do businesses have the confidence to deploy technology in a predictable way, allowing them to plan the expenses associated with the client device lifecycle. E.g. Apple doesnt generally support Mac OS versions for longer than 4-5 years, while Windows is supported for much longer lifecycles.

Best for Enterprise Mobility: Windows devices allow you to securely connect to corporate networks with improved VPN & Direct Access. You can access your data and apps on any Windows device with OneDrive and OneDrive for Business. Additionally to DirectAcces Windows includes workplace domain join, work folders , multi-factor authentication for the personally owned devices and many other enterprise security enhancements. Windows 8.1 devices offer a seamless integration with the customers current infrastructure and can be managed easily and securely, offering secure access to customer information and tools. e.g. Windows 8.1 devices use Active Directory, Group Policy, and Windows Server to securely access email, data, printers, and apps.

8Why Windows DevicesDesktop ApplicationsConsistent Experience across devicesThe broadest range of device optionsOut-of-the-box Security & malware protection

Widest range of peripherals

SMBThe broadest range of device options : Only Windows offers the widest selection of device from the broadest range of vendor to fit their needs and their budget. This means that customer can get the right device, serviceability, warranty and price.

Consistent experience across devices: Enterprise mobile is about enabling a fluid, seamless mobile experience for users. Going mobile is no longer about carrying a single mobile device. Going mobile now means the ability for any user to pick up any device in the context of what they are doing, and have instant access to all of their stuffsettings, data, and applications that follow the user and flow seamlessly from device to device Only with Windows do users have a consistent user interface, apps, and services across smartphone, tablet, laptop, all-in-one and living room televisions through Xbox. This consistency leads to a higher productivity and lower time and cost spend on user training.

Out-of-the-box Security and malware protection: Windows 8.1 includes built-in anti-virus, anti-malware, anti-phishing protection at no additional cost. IE 11 includes the industrys best protection against socially engineered malware the leading source of security threats today. Family Safety helps parents keep younger tablet users secure from todays threats. Windows 8.1 Pro includes hardware-level encryption with BitLocker, using industry-standard TPM.

Desktop Applications: Windows has150K+ modern apps and 700K+ desktop apps ( e.g. LOB apps ). Windows gives you forward and backward compatibility.

Widest range of peripherals: Windows works with the widest range of peripherals because it supports the widest range of drivers.

9Why not Google

Not Enterprise Ready

(e.g. SLAs, Sales, Compliance,)Multiple product pullbacksPrivacy concernsAn advertising companyInnovation everywhere does not mean focused innovation

Good enough regressive strategyNo hybrid options

No service in China

EnterpriseAn advertising company: Google for Work revenue is under the Other Revenue on Googles income statement. Other revenues, which represented a 8% of Googles 2013 revenue, includes Google for Work, Google Cloud Platform, Google Maps for Business, Google API business and more importantly sales in its Play store. In fact, Google said the revenue stream came mostly from stellar sales in its Play store (http://www.cnbc.com/id/101453496#.). This would mean that Google business cloud revenue could be less than 4% while the advertising revenue was 85% of 2013 revenue. The question is : Do you want to work with an IT provider that actually is basically an advertising company with less than 4% of their income depending on the services that you are hiring?

Privacy Concerns: Google's Street View cars secretly wiretapped Wi-Fi routers in the US and 30 countries. Google was accused of wiretapping in Gmail scans and Google also argued that non-Gmail users had no expectation of privacy when corresponding with Gmail users. Multiple data protection agencies in Europe are asking Google to modify its data protection agreements. Google stated that its scanning for advertising purposes cant be tuned off while On April 30, 2014, following significant pressure from technology and privacy experts and 1 day in advance of a White House report on big data Google hastily announced that its ads scanning would be turned off. Microsoft is unique among major cloud service providers with over 10 years of privacy experience and having a cloud specific privacy policy that provides strong commitments to customer data safeguarding and privacy protection. Microsoft contractually commits to not mining customer data for advertising purposes. Microsoft also does not use customer data for anything other than providing world-class services. As an advertising company Google needs to ensure that any connection with a user is a socket to target its advertising or to get usage an profile information.

Not Enterprise Ready: Google needs to expand its sales, solutions engineering and support capabilities to engage with enterprise and midmarket customers. Its SLAs do not fully cover the enterprise needs and some products bundled with their enterprise offering are not covered by the associated SLA. Google's cloud offering, although compliant with a number of regulations, is a general purpose platform with no explicit vertical services for customers in regulated industries, such as financial services, healthcare or government.

Innovation everywhere does not mean focused innovation: Although its true that Google invests in multiple research products (e.g. Google glasses, driverless car, high-altitude balloons,...) this doesnt mean that they are doing the same kind of innovation in enterprise products (e.g. Google for Work). In fact none of this innovation is perceived in products like Google Docs, Gmail or Google Cloud Platform.

Multiple product pullbacks: Its hard for companies to invest in products if they dont know if Google will continue to invest in a product. Theres a long list of Google products that were removed with short notice to the users. Its hard for companies to invest in products if they dont have a clear roadmap. (http://www.slate.com/articles/technology/map_of_the_week/2013/03/google_reader_joins_graveyard_of_dead_google_products.html )

Good enough regressive strategy: Due to this consumer focus, Google prioritizes simplicity to functionality. The resulting products can be considered good enough from a consumer point of view but does not cover all the needs of the enterprise and their information workers. Using Good Enough solutions is more like a regressive strategy than offering to employees a high productive workplace.

No hybrid options: Theres no on-premises version of Gmail, Google for Work, Hangouts, Google products are designed for a Cloud only world that does not correspond to the reality in the enterprise space.

No service in China: Google is not offering its services in China. This could be a concern for global companies that need a unique platform for their employees worldwide.

10Why not GoogleNot Enterprise Ready

(e.g. SLAs, Sales, Compliance,)Multiple product pullbacksPrivacy concernsAn advertising companyInnovation everywhere does not mean focused innovation

SMBAn advertising company: Google for Work revenue is under the Other Revenue on Googles income statement. Other revenues, which represented a 8% of Googles 2013 revenue, includes Google for Work, Google Cloud Platform, Google Maps for Business, Google API business and more importantly sales in its Play store. In fact, Google said the revenue stream came mostly from stellar sales in its Play store (http://www.cnbc.com/id/101453496#.). This would mean that Google business cloud revenue could be less than 4% while the advertising revenue was 85% of 2013 revenue. The question is : Do you want to work with an IT provider that actually is basically an advertising company with less than 4% of their income depending on the services that you are hiring?

Privacy Concerns: Google's Street View cars secretly wiretapped Wi-Fi routers in the US and 30 countries. Google was accused of wiretapping in Gmail scans and Google also argued that non-Gmail users had no expectation of privacy when corresponding with Gmail users. Multiple data protection agencies in Europe are asking Google to modify its data protection agreements. Google stated that its scanning for advertising purposes cant be tuned off while On April 30, 2014, following significant pressure from technology and privacy experts and 1 day in advance of a White House report on big data Google hastily announced that its ads scanning would be turned off. Microsoft is unique among major cloud service providers with over 10 years of privacy experience and having a cloud specific privacy policy that provides strong commitments to customer data safeguarding and privacy protection. Microsoft contractually commits to not mining customer data for advertising purposes. Microsoft also does not use customer data for anything other than providing world-class services.

Multiple product pullbacks: Theres a long list of Google products that were removed with short notice to the users. Its hard for companies to invest in products if they dont have a clear roadmap. (http://www.slate.com/articles/technology/map_of_the_week/2013/03/google_reader_joins_graveyard_of_dead_google_products.html )

Not Enterprise Ready: Google needs to expand its sales, solutions engineering and support capabilities to engage with enterprise and midmarket customers. Its SLAs do not fully cover the enterprise needs and some products bundled with their enterprise offering are not covered by the associated SLA. Google's cloud offering, although compliant with a number of regulations, is a general purpose platform with no explicit vertical services for customers in regulated industries, such as financial services, healthcare or government.

Innovation everywhere does not mean focused innovation: Although its true that Google invests in multiple research products (e.g. Google glasses, driverless car, high-altitude balloons,...) this doesnt mean that they are doing the same kind of innovation in enterprise products (e.g. Google for Work). In fact none of this innovation is perceived in products like Google Docs, Gmail or Google Cloud Platform.

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