Windows Server 2012/R2 Overview

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1 END OF LICENSE Windows Server 2012/R2 Overview December 31 st, 2017

2 Agenda Understanding the opportunity Win with Windows Server 2016 Next steps

3 Understanding the opportunity

4 Windows Server 2012/R2 End of License What is End of License? Partner Strategies Engagement Opportunities After December 31 st, 2017 Windows Server 2012/R2 can no longer be ordered. Protect revenue Get your partners trained on the benefits of upgrading to Windows Server 2016 Hardware and services Replace aging servers; migrate others ODR End of License Next Steps Distributers may continue to distribute product already in channel (ROK or Preinstall) after December 31 st, 2017 until inventory runs out. Preserve your reputation As a trusted advisor, be prepared by knowing and offering the most modern solution Virtualization Consolidate and virtualize servers Will Microsoft still support Windows Server 2012/R2? Microsoft will continue mainstream support until October 9, Create a win/win For you and your customer with a modern server. Client Access License Upgrading your customers to Windows Server 2016 will also require that their CALs are upgraded

5 Sell the benefits of a modern server

6 Three steps to build your business Win with Windows Server 2016 Maximize the revenue opportunity with Datacenter Add value through services and cloud acceleration

7 Win with Windows Server 2016

8 SMB IT organizations can position themselves for success with strategic and tactical use of cloud infrastructure services. - Gartner 1 There are other solutions out there that can deliver a lot of the features and functionality that are in Windows Server 2016, but none of them are really all-in-one products, and absolutely none of them are close to the price point. Kenny Lowe Head of Emerging Technologies, brightsolid 1 Hype Cycle for Small and Midsize Businesses, Gartner 2014

9 Safeguard Your Business Microsoft technologies have protections built-in to help: safeguard data across devices and apps onsite or in the cloud, recover from business disruptions, and make compliance easier. Improve IT Efficiency & Productivity Help deliver increased efficiency and maximize your IT investment, Microsoft s technology gives you the business tools of a much larger company, at the right price. Ready For The Cloud Whether moving to the cloud now or in the future, Microsoft technologies gives you the best of both worlds, so you can take advantage of external resources when it makes sense for your business. Just in Time & Just Enough Administration Windows Defender for malware protection Trusted/Secure boot Shielded Virtual Machines Host Guardian Services Enhanced Containers Stretch Clusters Rolling Cluster OS upgrades Storage Spaces Direct Storage Replica Storage Quality of Service Remote Desktop Services Encrypted Virtual Machines and Containers Azure Backup, Azure Storage, Azure Site Recovery 1 Azure Active Directory 1 RSMT Azure Remote Server Management Tools 1 Operations Manager Suite 1

10 Top reasons customers buy Datacenter edition #1 flexible Enables economies of scale. Run an unlimited number of virtual instances on up to two processors. Top Reasons to sell Datacenter edition #1 flexible Provides an infrastructure that grows with the business and enables customer to add virtual instances as needs change. #2 grows with you Buy only the user or device CALs you need now and add more as you scale in the future. #2 profitable Offers more opportunities to extend your reach into your customers businesses.

11 Businesses today may use only a fraction of their server capacity Windows Server 2016 A completely virtualized platforms for SMBs Top Reason to sell Virtualization services, solutions, and containers Help your customers virtualize to get the most of their investment, whether your customer has two servers or a room full. Windows Server 2016 includes support for virtualization and containers at no extra cost Sell more Virtual Machine licenses Upsell storage capacity either in local hardware or valueadd services such as Azure Storage Cross-sell additional managed IT service offerings SMB Benefits

12 For highly scaled, virtualized and software defined workload environments. Maximum flexibility to handle today s on-premise and tomorrow s planned cloud needs. Windows Server 2016 Datacenter edition specific features: Datacenter only storage features Datacenter only security features Datacenter only networking features Storage Spaces Direct, enables building highly available (HA) storage systems with inexpensive local storage SMB Benefits Help manage storage costs by using a broader range of storage options Simplifies deployment and management through existing tools Storage Replica: block-level, synchronous replication between servers or clusters SMB Benefits Potential reduction of licensing costs or hardware purchases for specialized storage solutions Helps reduce downtime, and increase reliability of business data Shielded Virtual Machines are protected against unauthorized access using various technologies such as encryption of their virtual disks and extend even to Hyper-V administrators SMB Benefits Improved admin security and access managed to applications and data (especially high security/regulated businesses) Offers significant overall security enhancements made across multiple components (including Hyper-V) Software Defined Networking Infrastructure (Network Controller, Software Load Balancer, and Multi-tenant Gateway) providing agility, dynamic security, and hybrid flexibility by enforcing network policy in the Hyper-V Virtual Switch using the Azure Virtual Filtering Platform (VFP) Switch Extension SMB Benefits Clear and concise policy management, cutting the time spent on infrastructure.

13 Enterprise class technology to drive any sized business Essentials Edition 25 users / 50 devices No server CALs required Unlimited, based on CALs Unlimited, based on CALs Workgroup / Standard 1 physical or virtual 1 2 VMs Unlimited VMs Procs 1 / 2 2 Must be root of domain 2 Hyper-V containers 2 Unlimited Hyper-V containers RAM 32GB/ 12TB Unlimited Windows Server containers Storage features including: Storage Replica & Storage Spaces Direct New Networking Stack SMB SMB links links 32GB 250 / Unlimited Max Users 50 50/ Unlimited Disk number 66/ Unlimited Shielded VMs and Host Guardian Service

14 Partner Revenue Windows Server Hardware Windows Server OS and CALs Server Applications Exchange SQL Server Sharepoint Quickbooks Microsoft Office Storage & Networking Network attach storage (NAS) Storage Area Network (SAN) Direct Attach Storage (DAS) Routers & Switches Value-added Services Automated Monitoring, Alerting & Logging Pre-Configured Additional managed IT service offerings Application migration services Server infrastructure migration services Virtualization deployment services Cloud acceleration services $ $ $ $ $ Owning the server transaction gains a strategic foothold with customers that enables additional sales opportunities

15 Next Steps

16 Add value through services and the cloud Build services to grow your business Application migration services Server infrastructure migration services Virtualization deployment services

17 Ready your business to sell, deploy, migrate, and develop for Windows Server 2016 Start selling Windows Server 2016 attached with or preinstalled on new hardware Don t forget to attach CALs. CALs are required for any device or user that will access the server Create new repeatable service offerings around virtualization, mobility, and cloud

18 Appendix

19 Technology Trends in SMB Create Growth Opportunities SMB Market Size SMB Market Spend SMB Virtualization Businesses worldwide with <250 employees 1 WW IT spend by SMBs in WW SMB spending on server virtualization is projected to grow 3 1 IFC.org AMI survey 3 AMI Partners, AMI s 2H14 Global Model, 2015

20 The rapidly changing world of business demands a new style of IT Market Trends Business Goals IT Needs Accelerating shift to cloud services Increasing mobility & bring your own devices trends Customer satisfaction Managing risk Deliver on security & compliance expectations Mitigate IT staff & skill resources constraints Growing demand for business analytics Expanding quantity of data Operational / Cost efficiency Employee productivity Improve IT agility Optimize IT budgets

21 Lack of a shared network makes it more costly to manage security, data backup, and content sharing Rising pressures on doing more with less requires IT to be more cost-effective and productive A changing business landscape demands a more flexible and efficient IT infrastructure 52% of small businesses in the US have no server 1 78% 17% on server virtualization 2 cloud services within 4 years 3 annual growth of WW SMB spending of SMBs in the US with being using et

22 Windows Server 2016 Version Comparisons Key Features for OEMs Windows Server 2012 Windows Server 2012 R2 Windows Server 2016* Identity, Access & Security Virtualization Storage Management & Automation Active Directory Services Dynamic Access Control Just Enough Admin/Just in Time Windows Defender Built-in Hyper-V clustering Hyper-V Replica Shielded virtual machines Host Guardian Services (for Virtual Machines) Windows Containers Virtual Desktop Infrastructure Shared VHDX Storage Quality of Service (QoS) Storage Spaces Direct and Storage Replica Enhanced Clusters (Site Aware Clusters, Rolling OS upgrades) Multi-server management Windows PowerShell Enhancements 22

23 Windows Server 2016 is Designed to fit Your Business Safeguard Your Business Improve IT Efficiency & Productivity Ready For The Cloud

24 Safeguard Your Business Get the latest anti-malware and anti-virus with built-in Windows Defender Reduce access risks using Just Enough & Just in Time administration Secure Windows Server environment from malware and tampering using Secure Boot Protect sensitive data and files regardless of location with Shielded Virtual Machines $3.79 Million is the average cost of a data breach, an increase of 23% over the past two years 1

25 Improve IT Efficiency & Productivity Improve server efficiency and reduce cost using virtual machines and containers Increase uptime and availability with built-in disaster recovery with enhanced clusters and replication Improve Remote Desktop Services with enhanced performance and graphic support Enhance data resiliency and reduce storage costs with expanded capabilities in Storage Spaces Direct 60% of companies By 2018 will rely on highly instrumented datacenters that use advanced automation to boost efficiency. 1

26 Be Ready for the Cloud Improve infrastructure agility through workload mobility using virtual machines and containers Build scalable storage capacity with easy to use Azure Storage Services 1 Enhance data resiliency and reduce storage costs with Azure Backup and Azure Site Recovery 1 Reduce user identity & security management complexity using Azure AD and Microsoft Intune 1 Simplify management of on-premises and cloud server infrastructure with Azure Remote Server Management 1 most businesses intend to be hybrid, with a weighted average of 64% private and 36% public 2

27 Window Server 2016 Licensing Licensing cores based on consumption New computing models enable greater mobility of data and apps between onpremises and cloud Moving to Core Licensing model establishes a common currency for computing resources on-premises or in the cloud Aligns to the evolution of hardware technology shift to core density not processor density

28 Licensing based on physical cores To be compliant all physical cores must be licensed Core Processor 1 Minimum 8 cores/ processor Physical server 2 Minimum 16 cores/server

29 1 2 3

30 Every time all the cores are licensed on the physical server you are granted 2 VMs 1 Customer wants 1 more VM Relicense all cores = 2 VMs Customer wants 2 more VMs Relicense all cores = 2 VMs Physical server fully licensed All cores licensed = 2 VMs

31 Comparing Cost of Licensing Models Addressing pricing concerns of the new licensing model Proc Cores/ Proc # of Cores to be licensed for 2 VMs Price to get 2VMs in WS2016 Price to get 2VMs in WS2012R2 # of Cores to be licensed for 4 VMs # of Cores to be licensed for 4 VMs Price for 4VM in WS2012R $600 $ $1,200 $1, $600 $ $1,200 $1, $1,200 $1, $2,400 $1, $1,200 $1, $2,400 $1, $1,200 $1, $2,400 $1, $1,500 $1, $3,000 $1,200 (Assume price of WS2012 R2 Standard for 2 proc is $600) Higher scaler & virtualization density consider Datacenter edition Hyper V containers will be treated similar to VMs

32 Adding Windows Server 2016 CALs to the sale can help: Boost your sales revenues by adding the CAL cost to your deals which increase deal size Improve customer satisfaction by knowing they are compliant for any users / clients / devices licenses Best practice for sellers: CALs must be purchased separately and are not part of the Windows Server 2016 license CALs should be sold with Windows Server 2016 at the point of purchase

33 CALs are required for users or devices that have direct access to the server CALs are cost-effective and scalable

34 Note: Remote Desktop Services requires a Windows Server CAL and an RDS CAL for each user/device.

35 CALs are no longer part of the Windows Server 2016 license. They must be purchased separately Customers need to buy Windows Server CALs for users or devices that access the server CALs are used in conjunction with Microsoft server software licenses to allow users and devices to access and utilize the services of that server software No CAL is needed for unauthenticated access through the Internet Device and user CALs, as well as Remote Desktop Services (RDS) devices and user CALs, can be used on the same server CALs are version-specific and may be used to access the corresponding version of Windows Server or any previous version. Software Assurance may be purchase for CALs 1 1

36

37 Differentiates your business from competitors Microsoft partners are earning services margins of 45-65% - Forrester Strengthens your role as a trusted advisor. Average margins 70% 60% Indicates a range 45-65% Builds recurring revenue streams. Can be replicated across customer scenarios. 50% 40% 30% 20% 10% 0% 16-23% 5-12% 5-12% Source: The Total Economic Impact of Microsoft Server 2012 and Microsoft Office 365 A Partner Business Case Overview, Forrester Consulting, June 2014.

38 Capitalize on changes already underway #1 cloud benefit Improved business agility was cited by 75% of SMBs as deciding factor in choosing SaaS. #1 hardware priority Consolidating IT infrastructure via virtualization was cited by 61% of SMBs as a top priority over the next 12 months. Migration to cloud (% of WW ICT Spend Migrating Into The Cloud) 15,90% 17,20% 18,70% SMBs are ready for hybrid cloud 13,40% 14,70% Offer hybrid solutions, combining the best of server and cloud. Move to annuity-based models enabled by cloud services. Add new high-margin services. 11,30% 12,30%

39 2016 Microsoft Corporation. All rights reserved.

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