LAR Partner Value Proposition

[Speaker Name]1/06/2012

Agenda• Section I – Private Cloud Overview

• Customer Pain Points• IDC Future Predictions• Why Microsoft for Cloud – Management is Key• Simple Licensing with System Center• Why Microsoft Needs LARs for Private Cloud• Microsoft and Partner Solution• Path to Private Cloud Profits Now

• Section II – Partner Opportunities with System Center 2012• Microsoft Leads Private Cloud Momentum • Grow Your Business with System Center• System Center – The Evolution and What’s New• Partner Opportunities with System Center

• Section III – Licensing and Microsoft Advantage• Licensing• Microsoft Licensing Advantage Over VMware

• Section IV – Resources & Next Steps

Section I – Private Cloud Overview

Customer Pain Points

I want a single view of Public and

Private Clouds

I virtualized, and now I have

virtual server sprawl

I need to meet my SLAs and respond

with agility to business

problems and opportunities

I have over a dozen

management tools from various

vendors that don’t work well together

It’s expensive to manage all of my infrastructure with multiple tools and

processes

I want predictable spend for

datacenter management

IDC - “Worldwide System Infrastructure Software 2012 Top 10 Predictions”

1. Customers will face confusing choices as virtualization, Cloud system software, and infrastructure automation software converge.

2. Private Clouds will grow like gangbusters, one use case at a time.

3. 2012 will be VMware's last year as king of the hill.

Source: IDC, Dec 2011, “IDC Worldwide System Infrastructure Software 2012 Top Predictions Report”

Cloud Drivers

Agility Focus Economics

Agility Focus EconomicsCompatibilitySecurity

Cloud Obstacles

Compliance

Public

CommonTechnologies

Identity ▪ Virtualization ▪ Management ▪ Development

Private

Best in Class Public, Private, and Hybrid Cloud

Control Heterogeneous Environments Across Public and Private Cloud: Management is Key

Multi-HypervisorsManagement

Application Frameworks

Integrated AutomationAcross Management

Public

Private

XenServer ESX

▪ DevelopmentIdentity ▪ Virtualization ▪ Management

Multiple Operating Systems

Multi-HypervisorsManagement

Application Frameworks

Integrated AutomationAcross Management

Private

XenServer ESX

Multiple Operating Systems

Public

Control Heterogeneous Environments Across Public and Private Cloud: Management is Key

Management

• Simplified and accelerated sales process • Eliminates administrative complexity• Easier to attach additional products and solutions

Simple Licensing with System Center Optimized licensing for Private Cloud

• Processor-based licensing• No additional VM charge

• Server Management: 16 -> 2 editions

• Client Management: 13 -> 3 licenses

• All features, all the time • Software Assurance

included with all licenses

Private Cloud Value:Maximizing Cloud capacity with unlimited virtualization

Consistent Capabilities:Including all Private Cloud features in every license

Simple Licensing:Product offerings simplified to two licensing editions

Why Microsoft needs Partners for Private Cloud

Attach

Services Outreach

Close the Deal Advi

se a

nd P

lan

Dep

loy

Partners

• Reach out to existing and new customers with a targeted story

You…• Attach additional services to

include ongoing management, new solutions, and Cloud offerings

You…

• Assure customers that the best long-term option is available today

You…

• Deploy System Center and help transform your customers’ costly legacy systems to Cloud-enabled environments

You…• Assess, advise, and help your

customers make the right purchasing decision to build a long-term Cloud-optimized plan with short-term value

You…

Microsoft and Partners Deliver the Private Cloud Promise

Customer Satisfaction & Profitable Partners

=Optimized Cloud

Offerings

Attach

Serv

ices

Outreach

Close the Deal

Advis

e a

nd P

lan

Deplo

y

Partners

Public

Private

Prepare your business for licensing changes and Private Cloud opportunities

Reach out to targeted customers and promote System Center 2012

Position ECI to every System Center opportunity

and get incentives

Ready

Outreach

Sell

Path to Private Cloud Profits Now

Section II - Partner Opportunities with System Center 2012

How much the Private Cloud market is expected to grow between 2010-2015

All Attention is on Private Cloud & Microsoft is Leading the Way!

Leading Management SolutionFastest Growing

Virtualization Solution

34%

16%11%

7% 4% 2%

Server

Microsoft HP IBM/Tivoli Dell Symantec Novell

43%

9% 7% 4% 4% 4%

Desktop

43% =

Source: “Worldwide Enterprise Server Cloud Computing 2010–2014 Forecast” IDC, May 2010

Source: IDC Management Tracker: Microsoft Internal research Source: IDC WW Quarterly Server Virtualization Tracker, March 2011

0

4

8

12

16 16%

9.6%

Microsoft

VMware

Revenue Accelerated Sales Profitability New Biz Models

• Revenue upside for sellers on premium mix, Software Assurance, and ECI

• Immediate monetary gain with partner incentives

• Gain incremental profit by delivering Private Cloud solutions

• Profit from upward revenue stream with suite-based licensing model

• New solution offerings across Private and Public Cloud spanning from the datacenter to the desktop

• Faster deal closing• Simplified licensing

means accelerated sales

• Price advantage means higher win ratio

Grow Your Business with System Center 2012

Partner Benefits

System Center 2012 Licensing&

Backup & Recovery

2006

Application Insight

IT Process Automation

2009

Configuration1994

Service Management

Server Virtualization

2007

Monitoring2000

2010 ServiceManager

Orchestrator

Data ProtectionManager

Operations Manager

Configuration Manager

App Controller

new

Virtual MachineManager

ComponentsCapabilities

ENABLE THE CLIENTENTER THE

DATACENTERHETEROGENEOUS SUPPORT

INTEGRATEDVIRTUALIZATION

EMBRACE THE CLOUD

new

Virtual Workload Provisioning

Backup & Recovery

Application Insight

IT Process Automation

Configuration

Service Management

Monitoring

ServiceManager

Orchestrator

Data ProtectionManager

Operations Manager

Configuration Manager

App Controller

new

Virtual MachineManager

ComponentsCapabilities

new

Virtual Workload Provisioning

System Center: The Solution for Today and the Future

Manage Private and Public Cloud applications and

workloads with a common solution

System Center: What’s New

• Hybrid IT Management

• Cloud Creation & Delegation

• Multi-Hypervisor Support

• Deep Application Insight

• Server Application Virtualization

• Process Automation

• Dynamic Optimization

• Network Monitoring

• Service Templates

• Self-Service Portal

Productive Infrastructure

Predictable Applications

Your Customers’ Cloud

EMPOWER USERS

Empower people to be productive from anywhere on whatever device they choose

• Device freedom

• Optimized, personalized application experience

• Application self-service

System Center: What’s New in Client ManagementClient management enables a simple, consistent way to take advantage of the value of System Center 2012

UNIFY INFRASTRUCTURE

Reduce costs by unifying IT management infrastructure

• Mobile, physical, and virtual management

• Security & compliance

• Integrated service management

SIMPLIFY ADMINISTRATION

Improve IT effectiveness and efficiency

• Comprehensive client management capabilities

• Improved administrator effectiveness

• Reduced infrastructure complexity

System Center 2012 Partner Opportunities Today

Solution Partner Opportunities Today

Infrastructure integration & management• Server consolidation, virtualization, and

migration• Server upgrade• Storage (SAN), backup, disaster recovery, and

security

Desktop management

Private Cloud strategy and planning services• Private Cloud design and integration services• Private Cloud security and compliance

services

Datacenter transformation for Private Cloud • Systems & process management, automation,

and orchestration• Self-service & charge-back, and showback• Workload-based services• Hybrid Cloud

Productive Infrastructure

Predictable Applications

Your Customers’ Cloud

System Center 2012 Expands LAR Opportunities Transactional LAR Partner Opportunities

Today

• Consolidation of point software solutions to a robust and comprehensive management platform that reduces software licensing and maintenance spend on niche solutions

• Improved management of a Private Cloud implementation: Enhancements in SCVMM and SCOM enable accelerated server virtualization which drives down hardware costs

• Enhanced desktop management

• Datacenter transformation for Private Cloud The core components of SCCM/SCSM and Orchestrator will position the customer to benefit from

• Enhanced efficiencies around self-service

• Charge-backs, process management

• Workload automation and orchestration 

• Cost savings when purchasing the entire suite if already purchasing SCCM/SCOM/SCSM 

Productive Infrastructure

Predictable Applications

Your Customers’ Cloud

System Center 2012 Competitive Advantage

Capability Microsoft System Center 2012 Advantage

Comparison: Microsoft (WS 2008 R2 SP1+System Center 2012) vs VMware (vSphere 5 + Cloud Infrastructure Suite)

Microsoft Focuses on Applications while VMware Focuses on Infrastructure

Servicing

Automation

Monitoring

Configuration

VM Management

• Microsoft enables deeply integrated service management across both physical and virtual infrastructure.

• Microsoft has 30+ integration packs, mostly focused on 3rd party tools. VMware has 6, mostly focused on VMware products.

• Microsoft has best-in-class workflows and automation.

• Only Microsoft monitors the Workload + OS + VM + Network. VMware’s workload monitoring is limited to memory, CPU, disk, and network.

• Only Microsoft provides application problem diagnosis, enabling developer operations (dev-ops) scenarios.

• Microsoft is the most widely used configuration life cycle management tool on the market . It has been available since 1996, while VMware’s product was first released in 2011.

• Microsoft is tightly integrated with the rest of System Center, while VMware’s is standalone.

Microsoft offers cross-platform management, server app-V integration, and service templates.

Microsoft has built-in resiliency. With VMware, the expensive vCenter Heartbeat product is required.

Gain Incremental Profit

SERVER VIRTUALIZATION OPPORTUNITY

Source: Microsoft Partner Economic Model for Server Virtualization, Microsoft internal estimates

0

100

200

300

400

500

600

$374K

$132K

Cost

PartnerMargin

$506K

10

00

s

Enabling

Private Cloud

0

100

200

300

400

500

600

700

PRIVATE CLOUDOPPORTUNITY

$207KCombined Margin

$449KCombined Cost

$656K

10

00

s

$75K

$75K

$374K

$132K

Private CloudPartner Margin

Cost of Private Cloud

Potential higher margin

Cost of Virtualization

Example based on 100 server consolidation scenario + Private Cloud (software, hardware, services)

Section III – Licensing and Microsoft Advantage

What’s Changing with System Center 2012 LicensingSimplifying & optimizing licensing for Private Cloud and Consumerization of IT

What stays the same What changes

Managed devices require Management Licenses

Concept of an Operating System Environment (OSE) and when a Management License is required

Server MLs differentiated based on virtualization rights & suited into ECI

Standalone products become components of integrated product Management Licenses

Software Assurance is included with all licenses

Server Management Licenses align to processor-based model, each license covers two processorsManagement server software and supporting SQL Runtime are now included with every Management License and Management Server Licenses are discontinued

Client MLs differentiated on component functionality and suited into Core CAL/ECAL

Enrollment for Core Infrastructure (ECI) Licensing Improvements

Service Manager **Virtual Machine Manager **

Endpoint Protection *Orchestrator **App Controller *

* New Component Introduced with System Center 2012

** Service Manager, VMM, and Orchestrator are now available through ECI Standard

Edition as well.

Endpoint Protection *

App Controller *

Two OSEs Unlimited OSEs

Low Density or No Virtualization

High Density VirtualizationEnrollment for Core

Infrastructure

Enrollment for Core Infrastructure

Standard

Enrollment for Core Infrastructure

Datacenter

Key Changes• Two editions• All the features, all the time• Processor-based licensing

ECI: Partner AdvantagesGenerates more opportunities to sell EA new/renewal and increase revenue

82% System Center Suites

65% Premium Mix

86% Attach to Windows Server Greater deal size by attaching management,

security, and Software Assurance (SA) by default

• Creates opportunities for more new EA customers• Increases upsell opportunity by 25% • More than 2x System Center attach to Windows Server

= more revenue

Position ECI in Every Opportunity for System Center

Capabilities

Workloads: OS + Applications

Identity & Security

Development

Management

Virtualization

Platform

Services + Hardware + Software

WORKLOADS / APPS

UNCHANGED PARTNER OPPORTUNITY TODAY NEW BUS. OPPORTUNITY

6:1 9:1 12:1 15:1$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$3,240,833

$4,423,219

$5,605,604

$6,788K

$424,668 $424,668 $424,668 $425K

VMware CIS + vCOPS + vFabric APM +Windows Server 2008 R2 Datacenter

VM Density (VM per physical processor)

16X

7.6X

At 15 VMs per processor,

Microsoft Private Cloud solution is 1/16th the cost of a comparable VMware Private Cloud

solution

Using vCOPS Enterprise Plus

Microsoft Continues as the Value LeaderMicrosoft Private Cloud value grows with density

Private Cloud with 500 VMs @ 4GB each

Price advantage increases win ratio for Microsoft partners and accelerates sales cycle

Private Cloud Licensing Comparison

vCenter Operations

vCenter Site Recovery Manager 5

vShield 5.0

vCloud Director 1.5 License: Per VM

License: Per VM

License: Per VM

License: Per VM

License: Per PROC + vRAM

VMware Cloud Infrastructure Suite

vCenter 5.0License: Per

Instance

Microsoft ECI Datacenter

Windows Server Datacenter

• Complex licensing

• Multiple tools, no single SKU

• Charge for every VM

• Simplified licensing

• Single SKU

• Unlimited virtualization rights

ECI Datacenter Allows:• Unlimited instances of Windows Server• Management for unlimited numbers of VMs• Security for unlimited number of VMs

System Center Datacenter (SMSD)

Forefront Endpoint Protection

vSphere 5.0

License: PER Processor

How to Sell ECIFour key selling scenarios to optimize datacenter with ECI

If the customer… Leverage ECI to discuss Outcome

Has less than 10% Windows Server Datacenter or

Enterprise

Customer is properly licensed for virtualization, or been

introduced to virtualization

Licensing Optimization leveraging their existing

investments

Has <70% System Center coverage

The benefits of standardizing their datacenter on System

Center

Customer is fully committed to Microsoft for management

Has <15% System Center Coverage, and invested SQL,

SharePoint or Exchange

Best-in-class management for Microsoft workloads

Customer uses System Center for primary management

platform

Has 35% of higher Windows Server Premium Mix

Microsoft’s differentiated Hyper-V based Private Cloud

Solution

Customer standardized on Microsoft Private Cloud

1

2

3

4

Earn More Revenue with Partner Rewards

Incentives for licensing activities in Major and Corporate Accounts incentives

(depending upon the customer segmentation)

Solutions incentives (Management and Virtualization SIP) if the partner completed the required account engagement activities Up to 30%

Earn Workload Accelerators for Management and Virtualization if they were in place in an area for Corporate Accounts incentives  

ECI LAR Bounty if submitted as per program guidelines Up to $2000

SAM Services incentives on the enrollment if the engagement is approved by the local SAM Engagement Manager

 

Private Cloud Deployment Services provides the opportunity to drive more sales by evaluating customer environments and getting monetary benefit by using customer SA hours

SA hours

Partner Program Incentive Amount

ECI Bounty

Overview

Eligibility

Goal

Effective Date*

*Or until funding is consumed

September 1, 2011 to June 15, 2012

First 205 qualifying ECI deals worldwide (non-US)

Applicable for participating LAR/EA Direct Advisors. Targeted to Sales and Licensing roles. All participating individuals encouraged to take 60 min sales or 90 min licensing training.

Partner Sales Rep incentive plan to drive ECI wins

Must be in Corporate Accounts (EPG-CAM, SMSP-CAM or SMSP-CTM, PS, CS sub-segments)

Qualifying Segments

Min ECI deal size is 50 processorsMust be net new ECI agreement Eligible Deals

$1000 or $2000 USD per new ECI paid to LARs to compensate associated LAR sales reps

Payout Amount

Part IV – Resources and Next Steps

Microsoft Commitment & InvestmentHuge momentum for partners to build Private Cloud practice

Partner Programs & Investments

Drive StrongAwareness &

Customer Demand

Generation

Journey to the CloudGoal: Drive Demand and optimize

opportunities

New: Private Cloud Immersion

Private Cloud LaunchGoal: Fundamentally change

industry momentum by winning Private Cloud

New: Major H2 Execution

Global Advertisement

Hyper-V Cloud Accelerate

Resources for Microsoft Cloud assessments, proof of concept, pilots, and

deployments

Solution Incentive Program

Management and virtualization solution partners

can earn fees up to 20 percent of the deal size on

eligible opportunities

Deployment Planning Services

Drive more sales by evaluating customer

environments and getting monetary benefit by using

customer SA hoursFast Track Partners

Pre-configured servers from Fast Track Partners help you

get your private cloud solutions deployed faster

Cloud Assessment Tool

Lead generation tool for developing and implementing

Private and Public Cloud solutions

Sales Planning/Deployment

Help solve customer IT planning, deployment, and operational challenges with no-cost Microsoft Solution

Accelerators

Resources and Next Steps

PLAN

• MPN Private Cloud Site

• Windows Server® 2008 R2 SP1 with Hyper-V™ & System Center 2012

• System Center 2012 Community Evaluation Program

• Private Cloud System Center 2012 Boot Camp

• Microsoft Private Cloud Practice Builder

ENABLE

• Virtualization Competency

• Identity and Security

Competency

• Systems Management Competency

• Server Platform Competency

• Microsoft Action Pack Solution Provider

CREATE DEMAND

• Customer Cloud Assessment Tool

• Private Cloud Campaign Materials

• Pinpoint

• Microsoft Private Cloud Accelerate Program

• Microsoft Assessment and Planning Toolkit (MAP)

SELL

• Private Cloud Strategy & VMware Compete Course

• The Solutions Incentive Program

• Enrollment for Core Infrastructure (ECI)

• License Mobility through Software Assurance

DEPLOY

• Deployment Planning Services

• Microsoft Private Cloud Fast Track

• Hyper-V™ Deployment Guides

1 2 3 4 5

For more information on System Center 2012, visit the Microsoft Server and Cloud Platform site!

© 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows 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.

Appendix – System Center 2012 Licensing

System Center 2012 Product Lineup

Server Management Licensing Client Management Licensing

System Center 2012 Simplified Server Management LicensingSystem Center 2012 Licensing

Editions

Two OSEs Unlimited OSEs

Two

Editions

Customers can manage any workload with both - Management software and SQL technologies are included

Comprehensive Private Cloud management solution differentiated on virtualization

All the features All the time

Processor-based

Licensing

Processor-based licensing simplifies purchasing and management

Low Density or No

Virtualization

High Density Virtualization

Licensing Managed Clients

  Configuration Manager Client ML

Endpoint Protection Subscription

Client Management Suite Client ML

Components Included

Configuration Manager

Virtual Machine Manager

Endpoint Protection Service Manager

Operations Manager

Data Protection Manager

Orchestrator

Included in Core CAL Suite  

Included in Enterprise CAL Suite

• Client Management Licenses (MLs) are required for managed devices that run non-server OSEs

• Client MLs are available on a per-OSE or per-user basis • Components included in the Client MLs are not available separately

Three System Center 2012 Client ML offerings

Appendix II – System Center 2012 Solutions/Capabilities

• Flexibility with delegation and control

• Application self-service across clouds

• Physical, virtual, and cloud management

Predictable Applications

Productive Infrastructure

Your Cloud

Deliver flexible and cost effective infrastructure with what you already know and own

• Heterogeneous support

• Process automation

• Self-service infrastructure

Apps power your business Deliver predictable application service levels with deep application insight

Private and public cloud computing on your terms managed witha common toolset

• Deep application monitoring and diagnosis

• Comprehensive application manageability

• Service-centric approach

System Center 2012

Productive Infrastructure - Components

Centralized management of DPM servers

Role based administration

Item-level recovery for virtual machines

Save time with consolidated management server console

Secure access for the broader IT team

Quicker time to recovery

Data Protection Manager

Configuration Manager

Improved Settings management with remediation

Integrated anti-malware with System Center Endpoint Protection

Delegated Administration

Improved Settings management with remediation

Integrated anti-malware with System Center Endpoint Protection

Delegated Administration

New for System Center 2012

Benefits

Predictable Application- Components

Service Catalog

Self Service Request Portal

Release & SLA Management

Data Warehouse

Increase organizational agility with customized service offerings

Improve corporate compliance through process management

Improve business intelligence through customized reporting

Service Manager

App Controller

Role-based access for the App Owner

Single view of delegated resources across Private & Public Clouds

Deploy and manage services as well as virtual machines

Increase App Owner agility with self-service interface

Save time by bringing together all delegated infrastructure

Improve reliability by deploying template-based services

Benefits

Operations Manager

Simplify management with visibility across the stack

Decrease time to resolution with deep application insight

Improve insights with personalized reporting

Performance ManagementMonitoring across Public and Private CloudsImproved UNIX & Linux supportNetwork MonitoringCustomizable dashboards

NEW!

New for System Center 2012

Your Cloud- Components

Aggregate, standardize and delegate datacenter resourcesMulti-vendor hypervisor supportService TemplatesServer Application VirtualizationDynamic Optimization

Preserve and optimize existing infrastructure investments

Improve infrastructure SLAs

Save time with standardized service creation and upgrades

Reduce costs through power optimization

Virtual Machine Manager

Orchestrator

Workflow automation

Third party integration

Simple design of custom workflow runbooks and integration packs

Publish-Subscribe Data Bus

Lower costs and increase reliability by automating repetitive tasks

Simplify heterogeneous datacenter management

Benefits

NEW!

New for System Center 2012

System Center 2012: Future-Ready

Advanced datacenter transformation for Private Cloud

Hybrid Cloud• Planning and design services• Infrastructure and application management• Application migration and management

across Private Cloud and Public Cloud

Hosting and managed services• Hosted infrastructure • Hosted applications• Managed services • Outsourcing and service-oriented insourcing

Public Cloud• Value-added services • Packaged solutions and components

Partner Future Opportunities

Productive Infrastructure

Predictable Applications

Your Customers’ Cloud